As mid-July approaches, the second quarter earnings season of the US stock market slowly begins.

Global investors once again focus on the magnificent seven of the US stock market's technology sector-$Apple (AAPL.US)$,$Microsoft (MSFT.US)$,$Alphabet-C (GOOG.US)$,$Amazon (AMZN.US)$,$NVIDIA (NVDA.US)$,$Meta Platforms (META.US)$And.$Tesla (TSLA.US)$.

According to the latest institutional forecasts and statistics compiled by the London Stock Exchange (LSEG), the revenue of S&P 500 index constituent stocks in the second quarter of the US stock market increased by 4.1%, and the net income increased by 10.1%, marking the fifth consecutive quarter of positive growth. Among them, information technology will continue to be the performance engine of the whole market, accounting for 1/3 of the total earnings growth.

According to the consensus expectations of analysts, Futu News has compiled market performance forecasts for large technology stocks for mooers' reference:

From market forecasts, Wall Street's expectations for US stock earnings this time are quite high. According to data from FactSet, the profit of the S&P 500 index in the second quarter is expected to increase by nearly 9% year-on-year, and is expected to achieve the largest quarterly increase since early 2022.

In addition, in the past, as the earnings season approached, analysts usually lowered their profit forecasts for companies. However, the profit downgrades in this earnings season are not significant. FactSet data shows that the profit forecast for this quarter has only been lowered by 0.5%, while the average downgraded rate in the past five years was 3.4%.

This also means that major US companies, especially tech giants, must achieve higher profit growth to avoid disappointing optimistic Wall Street analysts and lay the foundation for the stock market to reach new highs.

According to Deutsche Bank's forecast, the average profit growth of tech giants in the new earnings season is expected to drop from 38% in the previous quarter to 30%. At the same time, the rebound in profits of other US companies will support further market gains.

However, some analysts believe that technology giants in the US stock market are too important. Even if the profit performance of other industries' leading companies exceeds expectations, it may not be enough to offset the daily fluctuations of technology giants in the market.

In addition, it is worth noting that the market value weight of the magnificent seven in the S&P 500 index is 33.4%, while earnings and revenue weights are 18.0% and 10.2%, respectively. The forward P/E ratio of the total market is as high as 33.0 times, which is 53% higher than the premium of the overall index if the magnificent seven is excluded, and the forward P/E ratio of the whole market will drop to 18.0 times.

Citigroup strategist Scott Chronert wrote in a report that considering the high growth expectations, the market may need to see higher growth expectations before the US stock market can maintain its recent rally or rise further.

The outstanding stock price performance of US technology giants has raised Wall Street's expectations. Can they prove themselves in the new earnings season? This has become one of the biggest highlights of this earnings season.

Which tech enterprise's performance are mooers most looking forward to?

Which one of the magnificent seven do you bullish on the most?

Welcome to share your wonderful opinions~

Editor/Somer