Deutsche Bank strategists report that the S&P 500 closed at 7575, gaining 0.42% on Friday and 1.23% for the week, buoyed by a recovery in chip stocks and a rebound in the Philadelphia semiconductor index, which rose 2.70% for the week and 0.06% on Friday [1]. The positive momentum in US equities was attributed to the stabilisation in technology shares, particularly semiconductors [1].
The upcoming week marks the start of the Q2 US earnings season, with major banks such as JPMorgan, Bank of America, Goldman Sachs, Wells Fargo, and Citigroup set to report tomorrow [1]. On Wednesday, Morgan Stanley, ASML, Johnson & Johnson, and BlackRock will provide a cross-sector snapshot of corporate performance [1]. Thursday is expected to be particularly active, with earnings from TSMC, Netflix, General Electric, and UnitedHealth spanning technology, industrials, and healthcare sectors [1]. By Friday, market attention will shift to European companies including Volvo, Sandvik, and Saab [1].
In contrast to the US, the STOXX 600 index experienced its largest weekly decline since April, falling 1.79% for the week despite a marginal 0.04% gain on Friday [1]. The focus for equity markets in the coming days will also include Fed Chair Warsh’s testimony and the release of key inflation data, specifically the Consumer Price Index (CPI) and Producer Price Index (PPI), which are expected to influence market sentiment [1].
CONCLUSION
US equities ended the week on a positive note, driven by a rebound in chip stocks and anticipation of major earnings reports. The upcoming earnings season, along with key Fed signals and inflation data, are set to shape market direction in the near term. European equities, however, faced notable declines, highlighting regional divergence in market performance.