๐ ๐ฃ๐ฎ๐๐ ๐ช๐ฒ๐ฒ๐ธ ๐ฅ๐ฒ๐ฐ๐ฎ๐ฝ: ๐ง๐ฒ๐ฐ๐ต ๐ฃ๐ฟ๐ฒ๐๐๐๐ฟ๐ฒ & ๐๐ป๐ฒ๐ฟ๐ด๐ ๐ฆ๐๐ฟ๐ด๐ฒ
Markets ended the week on a cautious note, with the S&P 500 down ~0.6% and the Nasdaq dropping ~2.1%. We saw a noticeable rotation out of high-flying growth and tech stocks into defensive and cyclical sectors.
๐๐๐๐ & ๐ผ๐ ๐พ๐๐ฅ๐๐ญ: Early Q2 earnings results triggered some profit-taking. Alphabetโs increased capital expenditure outlook ($195Bโ$205B) sparked renewed debate around AI return on investment.
๐๐ฃ๐๐ง๐๐ฎ ๐ฅ๐๐ง๐๐ค๐ง๐ข๐๐ฃ๐๐: Crude oil (WTI) jumped roughly 9%โ12% over the week amid ongoing Middle East geopolitical tensions, making Energy the top-performing sector alongside Utilities and Real Estate.
๐๐๐๐ง๐ค & ๐๐๐๐ก๐๐จ: U.S. jobless claims fell to the lowest in decades, pointing to a resilient labor market, but 10-year Treasury yields ticked up toward 4.69%, keeping pressure on valuations.
๐๏ธ ๐ง๐ต๐ฒ ๐ช๐ฒ๐ฒ๐ธ ๐๐ต๐ฒ๐ฎ๐ฑ: ๐ง๐ต๐ฒ ๐ ๐ฎ๐ถ๐ป ๐๐๐ฒ๐ป๐
This coming week brings a cluster of market catalysts that could set the tone for the rest of the quarter:
๐ญ. ๐๐๐๐-๐พ๐๐ฅ ๐ฝ๐๐ ๐๐๐๐ ๐๐๐ง๐ฃ๐๐ฃ๐๐จ: The heavyweights are upโMicrosoft ($MSFT), Meta ($META (Meta Platforms Inc)), and Amazon ($AMZN (Amazon.com Inc)) all report. Cloud growth, AI monetization, and capex discipline will be the primary metrics under the microscope.
๐ฎ. ๐พ๐๐ฃ๐ฉ๐ง๐๐ก ๐ฝ๐๐ฃ๐ "๐๐ช๐ฅ๐๐ง-๐๐๐๐ ": Interest rate decisions are due from the Federal Reserve (FOMC), Bank of England, and Bank of Japan. Eyes will be on Chairman Powellโs commentary regarding the rate path heading into Q4.
๐ฃ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐: Short-term volatility and earnings noise are normal when expectations are elevated. I am keeping a long-term view, watching guidance closely, and using sector dislocations to identify high-conviction opportunities.
*How are you positioning your portfolio ahead of Big Tech earnings and the Fed? Let me know in the comments below! ๐
S&P500 $MFST $META$AMZN... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Great summary. I think this week will also highlight the importance of asset allocation over short-term predictions. For long-term ETF investors, earnings and central bank decisions can create volatility, but they rarely change the value of staying diversified and following a disciplined investment ... Show More
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