Major US indices pulled back this week, even as earnings season pointed to strong performance by American companies. 8% below its peak for the year.
5% from its year-to-date high. FactSet (NYSE:FDS) data shows that 24% of all companies in the S&P 500 Index have already released their earnings.
5%. Chances are that the final earnings growth figure will be higher than this since many technology and energy companies are yet to publish their numbers.
The earnings season will intensify in the coming weeks. Top Magnificent Seven companies like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:MSFT) will publish their results next week.
Read Also: Jensen Huang Downplays Memory Glut Fears: Will Micron Rebound Next? AI Bubble Fears and Soaring Crude Oil Prices The S&P 500 and Nasdaq 100 indices have struggled because of the ongoing AI bubble fears.
Ken Griffin, the billionaire founder of Citadel, warned that we are in a bubble, joining other top experts like Ray Dalio and Michael Burry in sounding the alarm. As a result, the biggest companies in the AI space, like Micron, CoreWeave, and Nebius, were among the top laggards this week.
On the positive side, some other experts believe that the AI fears are not justified. In a statement, Stephen Schwarzman, the founder of Blackstone (NYSE:BX), said that the AI boom was real, pointing to the rising demand from consumers.
US stocks are also weighed by rising oil prices, with Brent and the West Texas Intermediate (WTI) rising to $117 and $103, respectively.
