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Market Watch: Key Economic Events and Tech Earnings on the horizon
The upcoming week is poised to be a important one for financial markets, with crucial decisions from central banks and major technology companies releasing their latest financial results.
According to analyst Berka, a scenario where more than two central bankers opt to lower interest rates would likely trigger a market reaction characterized by a weaker dollar and reduced bond yields.
Wednesday is anticipated to be notably eventful. Beyond the Federal Reserve’s policy announcement, microsoft and Meta are scheduled to unveil their earnings reports after the close of U.S. trading. This will be followed by Apple and Amazon’s results on Thursday, and a key U.S. employment report on Friday, all of wich are closely monitored by investors.
Focus on Capital Expenditures
Investors will be paying close attention to how individual companies are performing in their core business segments.Microsoft‘s performance will be scrutinized,particularly its Azure cloud service,which benefits considerably from artificial intelligence-related projects. Continued growth in Microsoft’s capital expenditures for data center growth and AI infrastructure is also expected.
Meta, the parent company of Facebook and Instagram, has outlined substantial investments in artificial intelligence. CEO Mark Zuckerberg has spoken of long-term investments in the hundreds of billions of dollars to establish a large network for “superintelligence.” in recent quarters, Meta has notably increased its capital expenditures compared to the previous year.
Conversely, Apple has faced criticism for lagging behind competitors in the artificial intelligence space, with some market participants urging the company to adopt a more aggressive approach. Still, its capital expenditures continue to rise in line with the expansion of its product ecosystem.
Amazon’s performance will be under review not only for its e-commerce operations but primarily for its cloud division, AWS, which remains its principal profit generator. The article notes that substantial investment growth is also being driven by releases within cloud supply chains, which in turn boosts revenues and enables companies to generate capital for further expansion.
With markets having recently approached record valuations, even minor deviations from expectations in these companies’ results could have a considerable impact. Consequently, this “super week” could serve as an indicator of the market’s health and investor sentiment.
