HomeBusinessUS stocks could be in for their scariest week ever in 2024....

US stocks could be in for their scariest week ever in 2024. This is why.

The US stock market’s record rally could face the scariest part of 2024 in the coming week, with a dizzying array of risks on the horizon.

Much will depend on the earnings reports of major tech companies, volatility in U.S. debt markets, Friday’s monthly jobs numbers for October and the homecoming of a contentious presidential election.

“It’s a commotion that is certainly affecting the interest rate market,” Dec Mullarkey, head of investment strategy and asset allocation at SLC Management, said of the election. “In the past month, the 10-year period has really passed.”

Election fears have been expressed in the Treasury market and in the gold GC00 ahead of the Nov. 5 election, Mullarkey said, especially as polls indicate a very tight presidential race.

To see: Gold is not behaving as normal. What that means for investors.

The S&P 500 index SPX was higher Monday despite Tesla Inc.’s TSLA dip. after a weekly gain of about 22% after surprising Wall Street with third-quarter earnings numbers and an optimistic outlook.

The focus now is on Alphabet Inc.’s earnings. GOOG on Tuesday, followed by Microsoft Corp. MSFT and Meta Platforms Inc. META on Wednesday, and by Apple Inc. AAPL and Amazon.com Inc., AMZN on Thursday. AI chipmaker Nvidia Corp NVDA reports results on November 20.

“It’s a big week, with the ‘Magnificent Seven’ being very important earnings reports,” said Eric Beiley, executive director of asset management at Steward Partners. “We need to see these companies deliver strong results as shares trade at extremely high valuations.”

See also  Eli Lilly Earnings has Wall Street asking new questions about GLP-1 drugs. Is something going wrong?

Mega-cap tech stocks appear to be back in vogue, despite a broadening of the rally earlier this year to include mid-cap and even small-cap stocks that could benefit from the Federal Reserve’s move toward rate cuts.

The Russell 2000 index RUT of small-cap stocks fell 3% last week, while the information technology sector XX:SP500.45 of the S&P 500 rose 0.2%, according to FactSet.

To see: Fed rate cuts were supposed to boost small-cap stocks. What’s holding them back?

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments