Previous week was the one where the S & P 500 performed in an excellent manner, increasing its index value by 2.7%. The three-week losing track was finally broken, and the index ended the week at level of 5.124. For one more time, tech companies were the ones that were driving the market to the upside, especially after strong earnings from Microsoft and Alphabet. However, it should be noted that META was on a losing track of 10% due to its higher capital expenditures forecast. More earnings reports are set to be released in the week ahead, focusing on Amazon and Apple.
In addition to the forthcoming earnings reports, it should be considered that the Fed's rate decision is set for May 1st. This might bring some further volatility to the markets, especially now, when markets are giving up on a previous Fed`s promise over three rate cuts till the end of this year. In this sense, investors are currently strongly focused on what the Fed has to say in an after the meeting statement. Then it will be clearer, whether the current market optimism for equities will hold also in the future period.
In addition to the forthcoming earnings reports, it should be considered that the Fed's rate decision is set for May 1st. This might bring some further volatility to the markets, especially now, when markets are giving up on a previous Fed`s promise over three rate cuts till the end of this year. In this sense, investors are currently strongly focused on what the Fed has to say in an after the meeting statement. Then it will be clearer, whether the current market optimism for equities will hold also in the future period.
