The S&P 500, Nasdaq 100, and Dow Jones Industrial Average have pulled back from their yearly highs, with the Nasdaq 100 specifically falling to 29,187, its lowest level since September 16. The S&P 500 dropped to 7,660, while the Dow Jones traded at 52,000. The market is preparing for a week of corporate earnings releases that could influence these indices.
Several major companies are scheduled to report their financial results this week. SpaceX (NASDAQ: SPCX), GE Aerospace (NYSE: GE), and Netflix (NASDAQ: NFLX) will release their numbers on Tuesday. Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) are set to publish their reports on Wednesday. According to FactSet (NYSE: FDS) data, 9% of S&P 500 companies have reported so far, resulting in blended earnings growth of 29%. If this figure holds, it will mark the third consecutive quarter of earnings growth exceeding 25%.
US stocks are also reacting to rising crude oil prices. Brent crude touched the resistance level of $110, while West Texas Intermediate (WTI) rose to $101. This price increase has led to record-high levels for diesel and higher gasoline prices. Higher oil prices can benefit energy companies like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) but may also contribute to inflation, prompting the Federal Reserve to consider interest rate hikes. Recent data showed headline and core consumer prices rising 3.7% and 2.6%, respectively.
Market sentiment is also being affected by jitters regarding the artificial intelligence industry. Last week, companies such as Nvidia, Micron, SanDisk, and AMD saw their stock prices fall. Concerns have been fueled by reports that Anthropic’s third-quarter revenue growth slowed, and OpenAI’s annualized revenue was reported as $20 billion lower than initially estimated. Additionally, bond yields for AI infrastructure companies like CoreWeave and Oracle have risen, and Gartner issued a warning about substantial impairments of AI infrastructure by 2030.
