Ipek Ozkardeskaya
Swissquote Bank Ltd
The week kicked off on a mixed note. Equities in Europe fell, the major US indices were near flat, slightly positive for the S&P500 and Nasdaq, and slightly negative for the Dow Jones, as technology stocks extended a rebound into a second day while oil stocks retreated on a further selloff in crude oil.
In earnings, ON Semiconductor jumped 10% after reporting better-than-expected Q2 revenue and earnings. Microsoft will reveal its Q2 earnings today, after the bell. Its data center growth will be largely in focus, and may meet and even beat expectations as Big Tech companies continue to spend big on AI tools. But strong results may not spark the same enthusiasm than in the previous quarters if companies like Facebook and Google don’t confirm AI’s positive impact on their revenues.
In non-tech, McDonald’s saw its share price jump almost 4% but announced that its sales fell for the first time since the end of 2020 hinting that consumers are now seriously pushing back against rising prices and that points at taming inflationary pressures.
The Bank of Japan (BoJ), the Federal Reserve (Fed) and the Bank of England (BoE) will announce their latest policy decisions in the coming days, with the first expected to hike, the second hold and the third cut.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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