Screens display trading information about shares of Truth Social and Trump Media & Technology Group, outside the Nasdaq Market site in New York City Its valuation could be put to the test as companies report earnings in the coming weeks.
Investors will also listen for companies’ views on the economy and inflation, to gauge whether the so-called Goldilocks environment of resilient growth and cooling consumer prices can continue.weeks for how deeply the Federal Reserve will cut rates this year. Stocks rose after another stronger-than-expected employment report on Friday.
Analysts expect to see earnings growth of 5% in the first quarter, according to LSEG data. That would be the lowest since the second quarter of 2023.high interest rates, rising commodity costs, and falling corporate pricing power due to slowing inflation. Earnings grew by 10.1% in the fourth quarter of 2023.
“These businesses now need to justify these high valuations,” said Bryant VanCronkhite, a portfolio manager at Allspring Global Investments. “The market is looking for every company to talk about their demand drivers and articulate what they see coming ahead.”