Prior to the results of the US election in 2024, the S&P 500, Dow Jones, and Nasdaq were predicted to be influenced by these variables.
Alphabet, Microsoft, Meta, Apple, Amazon’s earnings releases, US jobs statistics, US election 2024, and US Fed announcements will all be watched by the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, the three indexes of the US stock market.
As investors closely monitor the earnings results of Wall Street’s largest firms with employment reports or jobs statistics, the benchmark S&P 500, Dow Jones Industrial Average, and Nasdaq Composite will be the main drivers of the US stock market in the week beginning October 28. The key US Fed’s next monetary policy decision will come after the polling day for the US election in 2024.
Earnings Reports for Alphabet, Microsoft, Meta, Apple, and Amazon
Next week, five of the “Magnificent Seven” megacap firms that have significantly influenced the market over the last two years are scheduled to release their quarterly results: Alphabet, the parent company of Google, Microsoft, Meta Platforms, Facebook, Apple, and Amazon.
These firms collectively hold 23% of the S&P 500’s weight due to their enormous market valuations, therefore the market’s response to their performance may influence more general indices in the days ahead.
Since the firms in the Magnificent Seven have shown significantly higher profit growth than the rest of the S&P 500, their average forward P/E ratio is 35 times. In the upcoming quarters, however, that disparity is anticipated to narrow.
With more than 150 S&P 500 businesses scheduled to release their results, next week is the busiest week of the third-quarter reporting season overall.
US Jobs Report
For Wall Street, the week beginning October 28 is critical since it is the last week before the U.S. presidential election on November 5. The October U.S. nonfarm payrolls data and the earnings from megacap tech companies like Alphabet, Apple, and Microsoft are expected at this time.
Investors are considering whether a stronger-than-expected economy may result in fewer interest rate reduction by the Federal Reserve than first thought before the U.S. employment data is released on November 1.
According to Reuters statistics, economists anticipate that the employment report will reveal that the economy added 140,000 jobs in October. The salary data will be crucial to monitor, but the report may be “messy” in the wake of two major hurricanes, according to Hartford Funds global investment strategist Nanette Abuhoff Jacobson.
US Fed Rate Announcement and US Election 2024
With Election Day on November 5 and the Fed’s next monetary policy meeting on November 7, the market-sensitive events continue the next week, perhaps making investors more anxious in the days ahead.
“It’s possible that the Fed became overly cautious before the data. According to Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions, “the growth and inflation figures don’t necessarily justify easing behavior.”
According to LSEG data, investors are still pricing in around two rate cuts before the end of the year and another 25 basis points at the Fed’s November meeting.
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