Global equities delivered a mixed performance, with the S&P 500 registering a second consecutive weekly decline, falling -0.61% overall despite a modest +0.05% gain on Friday. This marks the first back-to-back weekly drop for the index since March. In contrast, semiconductor shares showed resilience, as the Philly semiconductor index rose +1.24% over the week, though it slipped -4.25% on Friday. European and some Asian markets outperformed the US, with the STOXX 600 gaining +0.46% for the week, buoyed by a +0.82% recovery on Friday amid renewed hopes for US-Iran talks. The Nikkei advanced +0.73% for the week but fell -2.73% on Friday.
At the start of the new week, US equity futures pointed higher, with S&P 500 futures up +0.71% and Nasdaq futures gaining +1.17%. In Asia-Pacific, the S&P/ASX 200 led regional gains with a +1.14% increase, while the Hang Seng (+0.81%), CSI 300 (+0.25%), and Shanghai Composite (+0.40%) also posted gains. However, the KOSPI (-0.28%) and Nikkei (-0.14%) lagged, weighed down by weaker tech stocks.
Investor focus is now firmly on a heavy earnings calendar, with around 35% of the S&P 500's market capitalization set to report this week. Technology giants Microsoft and Meta are scheduled to release results on Wednesday, followed by Apple and Amazon on Thursday. Collectively, these four companies represent 17% of the S&P 500 and are expected to provide a crucial test of investor confidence in AI-related spending. Other notable US earnings releases include Visa and Mastercard in financials, ExxonMobil and Chevron in energy, and Coca-Cola and Procter & Gamble in consumer staples.
The outcome of these earnings reports, alongside signals from the Federal Reserve, is expected to play a significant role in shaping market sentiment and risk appetite in the near term. The performance of tech stocks, in particular, will be closely watched to gauge whether enthusiasm for AI-driven growth remains robust.
CONCLUSION
Global equity markets are at a pivotal juncture, with major tech earnings and Federal Reserve signals set to influence sentiment. The results from Microsoft, Meta, Apple, and Amazon will be especially important in determining the sustainability of investor optimism around AI-related spending. Market participants are closely monitoring these developments for cues on future direction.