Mid-Week Wrap: 01 May 2024
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Market Mood
The focus remains on the "Magnificent Seven," a group of influential companies, with recent earnings reports impacting market dynamics. Among those already reported are Microsoft and Alphabet, exceeding expectations and driving share prices up, while Tesla disappointed yet saw a market rally, and Meta Platforms was penalized for missing expectations. Concerns arise about the sustainability of these earnings and their effects on other firms, such as Nvidia potentially impacting others through increased revenue. Despite fluctuations, these seven firms have shown notable price action recently. Earnings reports from Amazon and Apple are expected this week, with Nvidia reporting in the following two weeks. Attention also turns to the upcoming FOMC interest rate decision, where the Fed acknowledges lingering uncertainty about inflation but maintains expectations for eventual moderation, likely signaling readiness to maintain current policy rates until inflation recedes and announcing plans to taper the balance sheet.