Company / Analytics

Analytics, 25 April 2022

What will drive the markets this week?

Rising inflation and concerns that the US Federal Reserve will increase interest rates drove global equities lower last week, despite mixed earnings from big banks.

Markets will largely be driven by earnings reports this week – major companies notably technology firms that form part of the FAAMG group - Meta, Apple, Amazon, Microsoft, and Google will report this week. Tech stocks have had a challenging time since 2022, and most have retreated from their 2021 highs.

The tech-heavy Nasdaq has fallen about 18% year-to-date, almost double the decline in the overall market. Growth stocks, which include many large tech companies, tend to be negatively affected when interest rates rise due to higher borrowing costs compared to value stocks – stocks of more established companies. Many established (value stock) companies including Coca Cola, Boeing, Colgate-Palmolive, and others also report earnings.

Investors will also review economic data including preliminary reading for first quarter GDP growth and housing in the US. GDP in the US is forecasted to experience a slow growth – about 1.5% quarter-on-quarter rate, or 4.3% year-over-year compared to 6.9% rate of increase in the fourth quarter of 2021. Here is a quick summary of events that will drive markets this week.

Monday, April 25

Tuesday, April 26

Wednesday, April 27

Thursday, April 28

Friday, April 29

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