NEW YORK -Richly valued U.S. stocks are leaving investors with little tolerance for disappointment, raising the stakes ahead of a week in which two more technology and growth giants are set to report.to its biggest weekly gain since early November following its first 5% pullback of the year. The S&P 500 is up about 7% in 2024 and some 24% since late October.). The Facebook parent's stock tumbled over 10% on Thursday after its report.
More earnings are in store in the coming week from the so-called Magnificent Seven group of companies that drove markets higher last year. Amazon been underwhelming so far.") surged 12% earlier in the week after the company said it would introduce new models by early 2025. Some investors attributed that to bargain hunting after a painful selloff this year, which left the bar for good news much lower. Tesla shares remain down over 30% for the year.
Solid corporate results have grown more important as climbing Treasury yields and stubborn inflation have raised uncertainty about stocks, said Chuck Carlson, chief executive officer at Horizon Investment Services. Expectations for interest rate cuts, which had been a key driver of the rally, have faded following signs of economic strength and sticky inflation. Futures markets on Friday showed investors pricing in just 35 basis points in rate cuts for 2024, compared to more than 150 priced in January.