Big Tech In The Spotlight As Stock Rally Falters
Big Tech’s struggle to meet lofty investor expectations this earnings season has taken the air out of a record-breaking stock run.
Pressure is now on Apple Inc., Amazon.com Inc., and Meta Platforms Inc. to come through on Thursday.
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The sector has led the S&P 500 lower this week after results from Microsoft Corp., Alphabet Inc., and Advanced Micro Devices Inc. were met with selling by traders. Investors had bid up the stocks to records on bets that artificial intelligence efforts are set to provide a big lift to profits and sales.
- Results follow Microsoft and Alphabet’s Tuesday reports
- Big tech stocks have led the S&P 500 lower this week
“The market seems to want more and more from these companies,” said Quincy Krosby, chief global strategist of LPL Financial LLC. “The market knows it has gone too far too fast and is saying ‘Unless you astound us, we’re going to bring you down several notches.’”
Big Tech stocks powered the S&P 500’s rally into record territory in January, but if this week is to set the tone for the month ahead, signs are pointing to uncertainty. The tech-heavy Nasdaq 100 Stock Index suffered its biggest drop in three months on Wednesday after earnings disappointed and Fed Chair Jerome
Wall Street analysts expect Apple to report about $118 billion in revenue for its first fiscal quarter, 1% higher than the same period a year ago. If the company meets the estimate, it would mark its first revenue expansion after four consecutive quarters of declining sales.
