What to Expect from the Markets This Week According to QQ Capital Investment Fund

This week, the U.S. stock market is focused on earnings reports from major tech companies, the Federal Reserve's monetary policy, and a range of economic and geopolitical factors. Investor expectations center on the possibility of the U.S. central bank maintaining a moderate stance on interest rate cuts, favoring a gradual adjustment rather than more drastic measures. This is due to recent labor data showing a stable but not overheated economy, suggesting the Fed could avoid abrupt policy changes.

In the technology sector, giants like Alphabet, Amazon, Microsoft, and Meta are scheduled to release their earnings reports. Artificial intelligence (AI) is expected to be a key theme, as companies like Microsoft and Alphabet invest in AI as a long-term competitive advantage. Analysts suggest these reports could positively influence their stock prices, especially if they reveal advancements in these strategic projects.

Another important aspect to consider is the performance of tech stocks in the current interest rate environment. Historically, high-growth tech companies have been affected by periods of high Treasury yields, but the expected moderate adjustment could alleviate this pressure. Additionally, recent rallies in international markets, such as the recovery of Chinese stocks driven by economic stimulus, could lead to a rotation towards emerging markets, although the preference for U.S. tech is likely to remain strong due to its attractiveness in innovation and revenue resilience.

In terms of investment opportunities, Microsoft and Alphabet stand out as solid candidates due to their focus on AI and cloud growth, while Amazon could benefit from increased sales in its e-commerce and web services business. If these companies' reports meet or exceed expectations, they could provide attractive short-term returns.

For a trading strategy this week, a suggested entry point for Microsoft would be $330, with a Take Profit at $350 and a Stop Loss at $320, leveraging the positive trend in its AI and cloud investments. For Alphabet, a recommended entry point would be $135, with a Take Profit at $145 and a Stop Loss at $130, anticipating strong results in digital advertising.