Finance

Wall Street is bracing for a pivotal week as tech giants like Microsoft, Alphabet, and Meta report quarterly earnings that will test the sustainability of the recent artificial intelligence-driven rally. While technology sectors are expected to lead earnings growth with projections near 40%, investors are closely watching for evidence that massive AI investments are translating into fundamental profit growth.

Brent crude futures have edged up toward $109 per barrel as a significant portion of global oil output remains effectively blocked from the Strait of Hormuz. The ongoing conflict has sparked fears of renewed inflation and cast a shadow over global growth, even as some investors remain hopeful for a potential peace deal to stabilize energy markets.

Stocks in the consumer staples and discretionary sectors have slumped as retailers like Dollar Tree and Ulta Beauty experience the impact of tighter household budgets. Rising gas prices and a stagnant job market are beginning to pinch lower-earning consumers, prompting some companies to slash prices to maintain customer demand.