Tech Giants Earnings Report: AI Euphoria and Consumer Spending Concerns Hit US Stock Market

New York City, New York, USA United States of America
Apple, Microsoft, Meta Platforms, and Amazon.com to report earnings this week
Earnings reports raised concerns about artificial intelligence and consumer spending in US stock market
Federal Reserve expected to signal rate cuts during meeting this week
Nasdaq 100 and S&P 500 both suffered significant declines
Tech-led stock market rally experienced its worst day since October 2022
Tech Giants Earnings Report: AI Euphoria and Consumer Spending Concerns Hit US Stock Market

In recent days, the tech-led stock market rally, which has been in place since the beginning of 2023, experienced its worst day since October 2022. The Nasdaq 100 and S&P 500 both suffered significant declines. According to reports from Bloomberg, earnings have raised concerns about artificial intelligence and consumer spending in the US stock market (Bloomberg, July 27, 2024).

The latest earnings reports have fueled two major worries that were already affecting the US stock market: The euphoria surrounding artificial intelligence may have run too far, and consumer spending could eventually start to stall. Despite overall profits continuing to expand at a solid pace and banks' earnings remaining strong, these concerns led to a halt in the stock-market rally that had been pushing major indexes to new record highs since the beginning of 2023 (Bloomberg, July 27, 2024).

Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Amazon.com (AMZN) are among the tech giants that will report earnings this week. Additionally, the Federal Reserve is expected to signal that rate cuts are on the horizon during its meeting this week.

The stock market rally diverged last week, with small caps rising strongly and a large number of buying opportunities emerging from various sectors. The Nasdaq fell below its 50-day line, while the S&P 500 regained that level on Friday (Investor's Business Daily, July 27, 2024).

Tesla (TSLA) and Google-parent Alphabet (GOOGL) both experienced declines following their earnings reports. The CEOs of Google and Meta Platforms voiced concerns about the economic environment during their respective earnings calls, adding to the uncertainty surrounding the stock market (Investor's Business Daily, July 27, 2024).


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Confidence

85%

Doubts
  • Are the concerns about AI euphoria and consumer spending stalling justified?
  • Will the Federal Reserve's expected rate cuts help stabilize the stock market?

Sources

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Earnings Derail Stock Rally Over Doubts on AI, Consumer Strength

Bloomberg News Now Natalia Kniazhevich, Saturday, 27 July 2024 17:04
  • Unique Points
    • Earnings reports are raising concerns about artificial intelligence and consumer spending in the US stock market.
  • Accuracy
    • Profits overall are expanding at a solid pace.
    • Banks’ earnings have continued to swell.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stock (NDX, SPX) Declines Fuel Concern Bull Run is Running Out of Steam

Bloomberg News Now Suzanne Woolley, Saturday, 27 July 2024 17:04
  • Unique Points
    • The tech-led stock rally that has lasted for the past year and a half suffered its worst day since October 2022.
    • The Nasdaq 100 experienced its worst day since October 2022 with a decline of unknown magnitude.
    • The S&P 500 plunged 2.3% ending a streak of 17 months without a drop of 2% or more.
  • Accuracy
    • ]The tech-led stock rally that has lasted for the past year and a half suffered its worst day since October 2022.[
    • This is the best stretch without such a decline since the start of the financial crisis.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

14 earnings, jobs and the Fed are what we're watching in the market this week

CNBC News Zev Fima Saturday, 27 July 2024 14:53
  • Unique Points
    None Found At Time Of Publication
  • Accuracy
    • ]The S&P 500 and Nasdaq experienced a tough week despite a rally on Friday that helped mitigate some losses.[
    • The tech-led stock rally that has lasted for the past year and a half suffered its worst day since October 2022.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

85%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Huge AI Earnings, Fed Pivot Loom; Here's What To Do

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Saturday, 27 July 2024 15:18
  • Unique Points
    • Dow Jones futures, S&P 500 futures, and Nasdaq futures will open on Sunday evening.
    • Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Amazon.com (AMZN) are among the tech titans headlining a massive week of earnings.
    • The Federal Reserve is expected to signal that rate cuts are coming soon this week.
  • Accuracy
    • Tesla (TSLA) and Google-parent Alphabet (GOOGL) tumbled on earnings, while CEOs expressed concerns about spending too much on artificial intelligence, impacting Nvidia (NVDA).
    • Investors have fully priced in at least a quarter-point rate cut in late September, with potential for two to three cuts this year.
    • Despite tech struggles, there were breakouts or stocks reclaiming buy points or flashing early entries in sectors such as housing/construction, industrial/aerospace, financial, energy, medicals and some software.
  • Deception (70%)
    The article contains editorializing and selective reporting. The author expresses their opinion that tech companies may be spending too much on artificial intelligence (AI) and implies that this is a bad thing, despite not providing any evidence to support this claim. They also state that 'tech firms feel pressure to spend heavily even if only to maintain their current market position and revenue.' This is an editorial statement and an assumption about the motivations of tech companies. The author also selectively reports on the earnings of specific tech companies (Apple, Microsoft, Meta, Amazon) while ignoring other sectors that are reporting earnings this week. They also mention a few stocks in passing without providing any analysis or context.
    • The CEOs of Google and Meta Platforms voiced concerns that tech companies might be spending too much on artificial intelligence.
    • Tech firms feel pressure to spend heavily even if only to maintain their current market position and revenue.
  • Fallacies (85%)
    The article contains several informal fallacies and appeals to authority. The author makes statements about the actions of tech companies without providing concrete evidence, such as 'That slammed Nvidia (NVDA)'. This is an appeal to emotion and a form of hasty generalization. Additionally, the author quotes CEOs expressing concerns about AI spending but then interprets this as a signal that rate cuts are coming. This is an example of an unwarranted assumption and a form of circular reasoning. The author also uses inflammatory language when describing the performance of certain stocks, such as 'tumbled' and 'slammed'. These are examples of loaded language and emotional appeals. Lastly, the author makes statements about future events without providing any evidence or justification, such as 'So if Powell doesn’t give a clear green light for rate cuts on Wednesday, financial markets could react poorly.' This is an example of a crystal ball fallacy.
    • That slammed Nvidia (NVDA)
    • So if Powell doesn’t give a clear green light for rate cuts on Wednesday, financial markets could react poorly.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication