Five Tech Giants Set to Influence Wall Street Trends

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Five Tech Giants Set to Influence Wall Street Trends
Photo: Yuki Iwamura/AP/TT

This week, quarterly reports are expected from some of the world's most highly valued listed companies – when five of Wall Street's seven most index-heavy tech giants, called "the magnificent seven", release their figures. They are likely to affect the stock market mood for the rest of the year.

After the US stock market closes on Wednesday, the reports will come from Google owner Alphabet, Facebook's parent company Meta and software giant Microsoft.

A day later, it's time for e-commerce giant Amazon and iPhone manufacturer Apple.

The five are currently occupying positions two to six on the list of the world's most valuable listed companies and account for about a quarter of the value of the New York Stock Exchange's broad S&P 500 index.

For three years, the technology companies' investments in AI, cloud services, e-commerce and digital advertising have been strongly driving the rise of the stock market in the US, and thus in most of the rest of the world.

Half of the growth

Among the seven are also chip giant Nvidia - which will report on November 19 and is the most valuable company - as well as electric car company Tesla, tenth on the list and which released the figures on Wednesday.

The seven companies account for almost half of the 15 percent increase on the S&P 500 so far this year.

In addition to looking at actual results during the quarter, investors are also looking for assurances that the flow of tens of billions of dollars to computer infrastructure will continue - and can lead to profits further ahead.

"Bodes well"

According to Bloomberg's forecast, the seven are expected to deliver an average profit growth of 14 percent during the quarter compared to the same period last year - which can be compared to 27 percent in the second quarter.

But the big tech companies usually present profits that far exceed Wall Street's expectations.

According to Talley Léger, chief strategist at financial advisory firm Wealth Consulting Group, there are underlying signs that this tradition will continue this time as well.

It bodes well for this season, he says to Bloomberg.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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