S&P 500 and Nasdaq Show Modest Rise with Earnings Season

S&P 500 and Nasdaq 100 futures have seen a modest increase. Last week, all three major averages witnessed gains, supported by promising economic data. The fourth quarter showed stronger economic growth than anticipated, while core inflation on an annual basis was below economist forecasts, indicating a potential easing in price hikes. However, these market gains were somewhat subdued in comparison to the previous week's rally, partly due to disappointing earnings reports from major companies like Intel and Tesla.

As the fourth quarter earnings season progresses, investors are eagerly awaiting new reports from leading global companies this week. Major players such as Microsoft, Alphabet, Apple, Amazon.com, Meta Platforms, and Advanced Micro Devices will release their financial results.

In addition to corporate earnings, the markets will also be focusing on the Federal Reserve's policy. The Federal Open Market Committee will begin its two-day meeting on Tuesday. Investors largely expect the central bank to keep interest rates unchanged.

The Nasdaq experienced a slight decline due to the disappointment caused by Intel and Tesla. However, the overall outlook remains bullish and the momentum is strong. This week, corporate earnings, particularly from the big caps, will have a significant impact on and determine the direction of the Nasdaq.