Apple, Microsoft, Alphabet, Amazon, and Nvidia collectively make up around 25% of the S&P 500 index’s market value.
The expectation now is that they’ll help pick up the slack from industries like energy and health care that are still mired in an earnings slump. “It’s very important for the big tech stocks to deliver” and bolster confidence broadly, said Gary Bradshaw, a portfolio manager at Hodges Capital Management. “The Street expects earnings to be good across the board. Megacap tech stocks have whatever it takes to lead the market in the final quarter of the year.”Soaring interest rates have rattled markets this month with the 10-year Treasury yield hitting the highest in more than a decade.
Netflix Inc and Tesla Inc are scheduled to kick off tech-related earnings Wednesday. Alphabet, Microsoft, Amazon and Meta Platforms Inc report the following week. Apple announces Nov 2 and Nvidia on Nov 21.