S&P 500 Outlook – High Tech Earnings Can Boost Risk Appetite


  • Earnings from Facebook, Google, Amazon, and apple collectively surpassed analyst’s expectations.
  • Together, the wall street stocks account for about 35% of Nasdaq and are key for the risk appetite
  • The reports might spark more demand for the USA indices after the looming events saw the price expectations for the S&P 500 index coil.

S&P 500 Outlook – High Tech Earnings Can Boost Risk Appetite

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Investors and traders will have much to digest as we approach the end of the week after the stunning series of corporate reports from Google, Facebook, Amazon, and apple. Collectively, the major tech giants stock account for about 35% of the Nasdaq 100 and might boost risk appetite in the next few days since they have been leading entities in the coronavirus recovery rally.

Elevated Anticipations Outmatched

Overall, every organization impression on both the bottom and top lines, clearly displaying an incredible ability to properly leverage their platforms to make profits in these unusual economic times. Having said that, trader expectations regarding all these mega-cap companies have been increased. So, the new rise in the prices of shares for every stock is typically much better than even the results.

In either way, the big tech companies seem to have delivered an amazing symphony of the quarterly results, share price reaction, and forward guidance to perfectly curate the resource improvement in the sentiments of the market. This is happening as the S&P 500 index, display indecisiveness signs. On the other hand, the risk appetite might get better with the FAANGMAN group looking forward to retaking the new reigns as great leaders in the speculative interest.

Although the impact might be seen easily in the performance of the Nasdaq, it’s highly likely that the reports will have a knock-on impact on Dow Jones and the S&P 500 and other high-risk sensitive assets such as the crude oil and the Australian dollar, even considering the concerns about the US GDP print. In this regard, the failure to follow up for all the stocks can complicate a broad risk-on rally that can be largely considered as the ominous sign.

However, it would be important to take note of the fact that the arrival of the huge tech earnings shows the highest levels of the season for investors with broader macroeconomic considerations. On the other hand, the increase of corporate reports might continue the next week as more companies work on how they will be releasing their results, Sharp Nasdaq 100 Reversal Implies Watching Gold and Dollar Closely.

Although the largest players have already passed, the reports will most likely continue injecting more volatility into the stock market, but it might take a huge or unexpected stock to shake S&P 500 Outlook – High Tech Earnings Can Boost Risk Appetite the tenacity of major tech companies after yesterday’s victory.

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