All eyes will be on the tech space this week, as many of the biggest tech companies — including Microsoft, Alphabet, Meta, Apple, and Amazon — are set to announce earnings, and many investors may be anxiously waiting to see if the market has a much-needed one get shot in the arm or face further disappointments.
Year-to-date, the S&P 500 is down about 11% — nearly 7% over the last month — and analysts say further disappointing earnings reports could drag the market further lower. If “the various earnings numbers come in lower than expected, they will most likely contribute to the weakness in the market as a whole,” said Julius de Kempenaer, senior technical analyst at StockCharts.com. But even a good week of earnings reports from tech companies is unlikely to calm the market, he says.
If earnings are better than expected, “maybe they can take a temporary hiatus [market’s] declining, but I’m afraid that won’t be enough to reverse the trend,” he says.
This group of…