Looking for actionable trade ideas to navigate the current market volatility? Subscribe right now to unlock access to InvestingPro's AI-selected stock winners.
US stock-index futures were mixed late Sunday as oil prices climbed, ahead of a crucial week for Wall Street after the S&P 500 and tech-heavy Nasdaq hit record highs. Dow futures, which had initially plunged more than 140 points, were down roughly 106 points (about 0.21%), while S&P 500 futures fell 0.05% and Nasdaq-100 futures rose 0.08% at 1:43 a.m. ET, following reports that Iran proposed reopening the Strait of Hormuz to the U.S. while postponing talks on its nuclear program, according to Axios.
WTI crude futures (CL.1), which climbed over 2% earlier Sunday, were trading about 1.67% higher at $95.94 a barrel at 1:47 a.m. ET.
Trading wrapped up Friday with the Nasdaq and S&P 500 posting their fourth consecutive weekly gains, while the Dow Jones Industrial Average edged down, ending a three-week rally. The Nasdaq and S&P 500 sit comfortably in record-high territory; the Dow remains just under 3% shy of its February peak.
Corporate earnings took center stage, with nearly 20% of S&P 500 firms reporting last week. FactSet data show 84% of those companies beat estimates, and blended year-over-year earnings growth was 15.1% -- on track for a sixth straight quarter of double-digit gains. Investors remained focused on AI-driven demand and related infrastructure spending, signs of resilient consumer demand, and firms' ability to absorb higher costs.
Microsoft, Alphabet, Amazon and Meta report Wednesday, with investors eyeing their massive capital spending to expand data centers and other AI-supporting infrastructure, while Apple reports Thursday following its CEO change. After a mixed start to the year, the Magnificent Seven and broader tech sector have rallied this month led by chipmakers. The Philadelphia Semiconductor Index (SOX) extended an 18-session winning streak through Friday.
Over one-third of the S&P 500 will report earnings next week, including five of the "Magnificent Seven" megacaps, key drivers of the more-than-three-year bull market.
A Fed meeting this week is drawing extra attention as investors look for clues on how the central bank views the economy's resilience amid the U.S.-Iran tensions.
The FOMC meets privately and will announce its rate decision before a Wednesday press conference. Policymakers are widely expected to keep the federal funds rate at 3.5%-3.75% (where it has been since January), though some hope cuts could come later this year. The federal funds rate affects consumer borrowing costs; lower rates spur spending and hiring but can stoke inflation, a risk heightened by the war.
Apple, Amazon, Microsoft, Alphabet and Meta -- nearly 25% of the S&P 500's weighing all report earnings in the coming days, a heavyweight slate that has many investors cautious and moving to cash amid nerves over the AI rally and the massive hyperscaler spending push.
Microsoft (MSFT) reports fiscal Q3 late Wednesday. Analysts expect EPS of $4.05 (up 17% y/y) and revenue of $81.37 billion (up 16% y/y). Investors will watch how Microsoft plans to monetize its large AI investments. The stock is down 12% year-to-date but up 17% from its late‑March low.
Alphabet (GOOGL) reports Q1 on April 29. Analysts expect EPS to decline about 5% year‑over‑year as heavy depreciation from AI data‑center capex weighs on profitability, while revenue is forecast to rise roughly 18%. Search-ad revenue is seen up about 16%, and cloud revenue nearly 50%. Investors will watch cloud performance and updates on Gemini user metrics (Gemini had over 750 million MAUs at end‑2025). Google I/O starts May 19.
Apple (AAPL) reports fiscal Q2 late Thursday. Its first release since CEO Tim Cook said he will step down this fall to become executive chairman; John Ternus, SVP of hardware engineering, named CEO. Analysts expect EPS of $1.95 (up 18.2% y/y) and revenue of $109.4 billion (up 14.8%), helped by launches like the MacBook Neo and iPhone 17e. Morgan Stanley called the leadership change a transition that could renew optimism, maintaining an overweight rating and a $315 price target (16% above Friday's close).
Amazon (AMZN) reports Q1 late Wednesday, with Wall Street focused on AWS after recent deals to supply extra computing power to OpenAI, Anthropic and Meta. Analysts expect AWS revenue to rise 25.8% (it grew 23.6% last quarter). Overall, FactSet models adjusted EPS of $1.63 (up 2.5% y/y) and revenue of $177.3 billion (up 14%). Investors will watch margin pressure from higher oil prices and whether Amazon’s Q2 operating-income guidance meets the $22.65 billion Street target.
Analysts forecast revenue growth to accelerate to 31% for the quarter, while consensus expects EPS to rise about 4%. Meta’s (META) Thursday announcement of a 10% workforce cut to offset AI infrastructure spending will draw scrutiny. UBS raised its price target to 908 on Tuesday, implying nearly 35% upside, citing AI-driven ad growth and monetization efforts.
Pharmaceutical giants, led by weight‑loss leader Eli Lilly (LLY), report Q1 results next week. The slate begins with Novartis (NVS) before markets open Tuesday, followed early Wednesday by AstraZeneca (AZN), (GSK), AbbVie and Teva. Amgen (AMGN) and Gilead (GILD) report late Thursday.
Investors will watch Amgen for updates on weight‑loss drug development and growth from cholesterol drug Repatha and look to Gilead for progress on the rollout of Yeztugo, the twice‑annual HIV prevention shot.
Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, & Fund Management. He is the founder of www.twtlearning.com providing financial education, research and advisory services to fund & hedge fund managers and family offices.
He has been trading FX, FX options, US stocks & options, Indices, Commodities & Oil, and Metals Futures. He has a CMT charter, an AAPTA membership, and a CMT Canada membership. He has worked in various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners, and Bridge Information Systems.