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Overview of Friday's Market Activity
On Friday, U.S. stocks marginally fell as investors pored through the latest earnings reports and further contemplated the Federal Reserve's plans regarding interest rates in the coming months.
Regardless of Friday's slight downtick, all three major indices recorded weekly growth. The Dow Jones Industrial Average, a roster of blue-chip shares, recorded a 0.7% increase. Meanwhile, the S&P 500, a significant barometer, rose by 1.1%, and the Nasdaq Composite, predominantly comprised of technology stocks, advanced by 0.9%.
Heading into a Significant Week for U.S. Stocks
The forthcoming week promises to be eventful, brimming with various market catalysts, including a pivotal Federal Reserve's monetary policy meeting, a critical employment report, and several high-profile tech company earnings.
Market sentiment heavily leans toward the U.S. central bank keeping interest rates steady on Wednesday. However, Federal Reserve Chairman Jerome Powell may provide some insight into the timing of future rate cuts during his conference after the meeting.
After some robust economic data, investors have largely shifted their anticipations from March to May for the Fed's initial rate cut, as indicated by the Investing.com Fed Rate Monitor Tool.
Other Key Economic Events to Look Out for
Beyond the Fed, Friday’s employment report for January is another significant marking point. It's projected to reveal that the economy gained 177,000 jobs, a reduction from December’s 216,000 job growth, with the unemployment rate remaining at 3.7%.
Massive Tech Earnings on the Horizon
Moreover, the earnings season is in full swing, with five of the ‘Magnificent Seven’ tech stocks scheduled to report their latest results. Microsoft and Alphabet, Google's parent company, are set to report on Tuesday evening, while Apple, Amazon, and Meta Platforms are due later on Thursday.
They will be joined by prominent companies such as Advanced Micro Devices, Qualcomm, Boeing, United Parcel Service, General Motors, ExxonMobil, Chevron, Mastercard, Starbucks, Pfizer, and Novo Nordisk.
Stock Anticipations: Microsoft & General Motors
I predict Microsoft to continue its upward trajectory, with a potential breakthrough to a new record on the horizon, as the tech giant is expected to report yet another quarter of significant profit and revenue growth.
On a less optimistic note, General Motors' earnings may not impress investors as various challenges are likely to impact its business negatively.
