On the evening of the 22nd Beijing time, US stocks opened higher on Tuesday. Major stock indexes continued their strong gains from the previous trading day. About 180 S&P 500 companies will announce their results this week. This week, the market paid attention to the financial reports of the Big Seven US stocks and the March PCE inflation index.

As of press release, the NASDAQ is up 0.68%, the S&P 500 is up 0.52%, and the Dow is up 0.23%.

Financial reports are the focus of investors' attention this week. About 180 S&P 500 companies will announce their results this week, accounting for more than 40% of the S&P 500 market value.

Including Tesla, Meta Platforms, Microsoft, and Google's parent company Alphabet, most of the so-called Big Seven US stocks will release financial reports this week. Tesla is due to announce results after the market closes on Tuesday, followed by Meta Platforms. Google's parent company Alphabet and Microsoft will release their earnings reports this Thursday.

According to industry research data, the profits of the “Big Seven US stocks” are expected to increase 38% year-on-year in the first quarter, dwarfing the overall 2.4% year-on-year growth forecast for the S&P 500 index.

Nvidia, known by Goldman Sachs Group's trading department as “the most important stock on the planet,” will take another month to release its earnings report. Currently, the average market anticipates that its net profit growth will drop to 23%.

UBS downgraded the ratings of Apple, Amazon, Google, Meta, Microsoft, and Nvidia from increasing holdings to neutral on Monday. UBS warned that the profit growth momentum of these six tech stocks could “collapse” in the next few quarters.

Citigroup strategists Mihir Tirodkar and Beata Manthey wrote in a report: “We remain focused on the current earnings season, which may cause investors to refocus on solid fundamentals. We'll look at the recent pullback as a buying opportunity.”

Technology stocks such as Nvidia have recently been sold off and are once again sought after by investors. The reason Nvidia was previously sold was that the market feared that the prospects for rising inflation and rising treasury yields would hurt its performance.

Ayako Yoshioka, senior portfolio manager at Wealth Investments Group, said, “The short-term rebound in the market makes a lot of sense here. Because we had a difficult week and a half before. Now we're seeing some rebound in tech stocks.”

Marko Kolanovic, chief market strategist at J.P. Morgan Chase, said that the decline in the US stock market in the past three weeks was the beginning of the sell-off. As macroeconomic risks such as rising US bond yields, the strengthening of the US dollar, and rising oil prices intensify, the sell-off is likely to intensify.

There are also some important economic data for the second half of this week, including Thursday's GDP data and Friday's March Personal Consumption Expenditure Price Index (PCE). The US Department of Commerce will release important PCE inflation data on Friday, which is the Federal Reserve's preferred inflation indicator.

The market is also closely watching the prospects for the Fed to cut interest rates this year. Traders now expect that the Federal Reserve is most likely to cut interest rates for the first time in September by only 40 basis points, compared to expectations at the beginning of the year to cut interest rates by 150 basis points.

AMP chief economist Shane Oliver said, “The corporate earnings report we are seeing in the next few weeks is likely to be positive, but clearly there are still questions surrounding what the Federal Reserve will do next. It is still too early to say that the tense situation in the Middle East has disappeared.”

As the US financial market continues to debate the timing of interest rate cuts, the founder of the “Black Swan Fund,” one of Wall Street's most pessimistic hedge fund managers and good at profiting from tail risk, warned that investors should make full use of this optimism during the recent period when economic optimism continues, because a shift to interest rate cuts would indicate a sharp collapse in the market.

Individual stocks in focus

Most Star Tech stocks strengthened, with Meta up more than 2%, Nvidia and Netflix up more than 1%, and Microsoft, Amazon, and Google rising slightly.

Popular Chinese securities generally rose. Pinduoduo rose more than 3%, Ali, JD, and NIO rose more than 1%, and Ideal and Baidu rose slightly.

Chip stocks improved. Arm rose more than 3%, AMD rose more than 2%, Nvidia rose more than 1%, and Micron, TSMC, and Broadcom followed suit.

In terms of individual stocks,$Spotify Technology (SPOT.US)$It rose nearly 14%, and the Q1 earnings report was higher than expected.

$General Motors (GM.US)$The increase was more than 4%, and the Q1 earnings report exceeded market expectations.

$General Electric (GE.US)$The increase was more than 4%, raising the annual profit target.

editor/tolk