The U.S. earnings season provided a ray of hope to investors amidst the weak macro environment
The U.S. earnings season provided a ray of hope to investors amidst the weak macro environment. Large-cap companies fared better than expected, and technology firms delivered solid results including the likes of Meta Platforms Inc., Google parent Alphabet Inc. and Amazon.
On the back of this positive news flow, traders added $9 billion in new, long positions on S&P 500 futures over the past week, according to analysis by Citi.
As per data compiled by Bloomberg Intelligence, about 70% of companies in the S&P 500 Index have declared their quarterly results and over 79% of them have beaten estimates. This data has overshadowed weak economic data including U.S. GDP that missed estimates in Q1, coming in at 1.1% vs Bloomberg’s poll of 1.9%.
With the Fed hiking interest rates by another 25 bps yesterday but sounding dovish with no further hikes, traders and investors will once again shift their focus to earnings and economic data.
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