US stock trades mixed as investors wait on mega-cap tech results to kick off

Equities were mixed on Tuesday as investors prepare for fourth quarter earnings results from some of world’s most valuable companies.

Microsoft and Alphabet will report after the closing bell, giving traders a better understanding of how sustainable the recent market rally is. The firms belong to the “Magnificent 7” stocks, a tech-focused cohort that has significantly outperformed the broader index.

Later in the week, Amazon, Meta, and Apple will also release earnings results, revealing how they performed in the final three months of last year.

Outside of the group, strong earnings rocketed shares in the electronics maker Sanmina by over 28%. General Motors shares climbed above 7% on estimate-beating results. UPS, Whirlpool, and JetBlue were among the companies that fell on missed projections.

Investors are also awaiting the outcome of the Federal Reserve’s two-day meeting, which began on Tuesday. Markets are betting interest rates remain steady this month, Chairman Jerome Powell’s press conference at 2:30 p.m. on Wednesday could provide more insight into future monetary policy.

Investors now believe there is a 54.5% chance that a rate cut will come in May, according to the CME FedWatch Tool.

“While the market may be craving interest rate cuts in the near term, the current level of higher interest rates bodes well for the long-term outlook for a balanced portfolio. We continue to advise clients to focus on their long-term investment plan and avoid knee-jerk decisions,” Vanguard Chief Global Economist Joe Davis said.

source: markets Insider