Stock Market

Stocks turn upbeat with Big Tech earnings in view

US stocks opened higher on Monday, attempting to rebound from their worst week of the year as investors braced for a flood of corporate earnings.

The S&P 500 (^GSPC) gained 0.5% after closing below the 5,000 level on Friday for the first time since February amid six straight days of losses. The Dow Jones Industrial Average (^DJI) also added 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) put on 0.6%.

After its recent battering, the market rally has sunk to its most fragile point in months, and this week will be critical to determining whether the malaise continues.

Tech stocks are looking to recover after lackluster earnings from Netflix (NFLX) dragged on a broader market already grappling with geopolitical tensions. Fading chances of an interest rate cut have fueled skepticism that megacaps can continue to shoulder the task of driving gains.

Hopes are now resting on Big Tech earnings later in the week to reassure and reignite the market. On deck are quarterly reports from Meta (META), Microsoft (MSFT) and Alphabet (GOOG). On Monday, Verizon (VZ) is a highlight as the market gets ready for a deluge of reports, with 178 from S&P 500 companies alone due in coming days.

But the focus Monday is on Tesla (TSLA) as the EV maker said it has cut prices in the US, China, and several other countries. Tesla will report quarterly results on Tuesday after the market close. The Elon Musk-led company has already unsettled some investors with its robotaxi push and decision to have shareholders vote again on Musk’s rejected pay package. Shares fell roughly 3% in early trading.

Meanwhile, debate over the Federal Reserve’s stance on rate cuts continued to rumble, after chair Jerome Powell and fellow policymakers turned more hawkish last week in the face of persistent inflation. Given that, minds are already turning toward Friday’s release of the PCE index — the Fed’s preferred inflation gauge — as critical to assessing whether rates will stay higher for longer.

Live3 updates

  • Nvidia stock rebounds 3%, Tesla shares extend decline

    Nvidia (NVDA) shares led a rebound in Big Tech stocks on Monday as the broader market attempted to recover from last week’s losses.

    Nvidia rose more than 3% following a 10% drop on Friday, when a sell-off in technology stocks led steep declines on the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC).

    On Monday the S&P 500 rose 0.5% in an attempt to snap a six day losing streak.

    Meanwhile Tesla (TSLA) shares were down roughly 2% at around 10 AM Eastern as investors reacted to the EV maker’s price cuts on its vehicles in China. Monday marked the seventh consecutive session of declines for Tesla.

  • Stocks attempt recovery with Big Tech earnings ahead

    Stocks opened higher on Monday, following their worst week of the year, as investors await a flood of earnings.

    The S&P 500 (^GSPC) moved up 0.5%, rising back above the 5,000 level. The Dow Jones Industrial Average (^DJI) also gained 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) was 0.6% higher.

    Tech stocks looked to recover from a sharp decline on Friday in reaction to lackluster earnings from Netflix (NFLX) and a 10% drop in shares of AI darling Nvidia (NVDA)

    Monday’s focus is on Tesla (TSLA) as the EV maker said it has cut prices in the US, China, and several other countries. Shares of the EV maker fell more than 4% in early trading. Tesla will report quarterly results on Tuesday after the market close.

    Other highly anticipated quarterly results this week include Meta (META), Microsoft (MSFT) and Alphabet (GOOG).

  • Reminder on Nvidia after Friday’s beating

    Tough session for Nvidia (NVDA) on Friday — shares lost 10%!

    The stock is now down 25% from its March 25 highs.

    Who knows whether this is the bottom, as the entire AI trade is under pressure amid more cautious sentiment.

    But what I do know is that Nvidia is fundamentally strong and likely to be defended on the Street soon due to the sell-off.

    Good point here from Evercore ISI’s Mark Lapacis, in a new note that underscores the point:

    “We think investors underestimate 1) the importance of the chip+hardware+software ecosystem that Nvidia has created, 2) that computing eras last 15-20 years and are typically dominated by a single vertically integrated ecosystem company, whose returns are measured in 100-to-1000 bagger range.”

    And another good point on Nvidia’s sell-off from Freedom Capital chief global strategist Jay Woods on Opening Bid this morning (episode down below):

    “These things happen and people get emotional with this stock — but I think this is a great opportunity for those waiting for that dip in a stock that continues to crush it in each earnings cycle and in the hottest space to dip their toe in the water.”

    Watch Yahoo Finance’s new vodcast Opening Bid Monday and Friday at 8am ET on Yahoo Finance, YouTube and podcast platforms Spotify and Apple Music.

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