Key Takeaways

  • Tech giant Microsoft and Google parent Alphabet are set to release Q3 earnings after the closing bell today
  • Upcoming GDP and PCE reports catch the market’s attention for inflation insights

Tech-Heavy Earnings

The Nasdaq stood alone as the only one of the large-cap indexes to close with a gain Monday evening. The tech-focused index was driven 0.3% higher by positive market sentiment surrounding software heavyweight Microsoft and Google parent Alphabet’s incoming third-quarter results, set to be announced after Tuesday’s closing bell.  Forecasts are bright for the technology powerhouses. The optimistic outlook surrounding Microsoft can be attributed to its $13 billion investment in OpenAI, the artificial intelligence organization known for ChatGPT. On Monday, the software company announced that they have also committed $3.2 billion to expand AI and cloud computing abilities in Australia. Alphabet, the third-largest corporation in the market, is also set to announce its Q3 report today after market close. The tech giant hopped on the AI train, rolling out a new way to search the web using generative AI. In another step to innovation, the search engine introduced Bard, a chat-based tool, to compete with ChatGPT. Alphabet stock has jumped 55% in the year to date, contributing to the Nasdaq’s 24% rise in the same time frame.

An Extended Outlook

The US economic calendar is busy this week, with beverage corporation Coca-Cola, banking giant HSBC, and telecommunications company Verizon all set to join their peers in releasing their third-quarter earnings.  Further, market participants can expect the US Gross Domestic Product (GDP) report to be announced on Thursday.  Next in line are the Personal Consumption Expenditures (PCE) and Core PCE reports, scheduled for Friday. The PCE print is the Federal Reserve’s preferred gauge of inflation and is likely to sway the policymaker’s next move regarding interest rates. Zooming out to the broader scope of the markets, the S&P 500 fell 0.17% on Monday, while the Dow Jones Industrial Average slumped 0.58%, leaving the Nasdaq as the session’s sole gainer. Altogether, traders can expect some volatility in the markets, given the influence of earnings reports and inflation data. Brace yourself for impact and make use of risk management tools, all the while keeping your emotions in check.