Biden’s surprise decision not to run in the 2024 presidential race has added to the current political uncertainty and could affect market stability in the coming days.
This comes on top of the IT outage that affect several industries during the last few days and could exacerbate a shift away from large tech stocks. However, market participants could seize the opportunity to buy the dip in tech stocks.
Additionally, expectations of Federal Reserve interest rate cuts, which are expected to start in September, could contribute to further optimism in the equity market. Despite the recent disruption, Microsoft shares remain near their highs and could rebound.
Verizon’s stock fell in premarket trading after a mixed fiscal second-quarter report. While Verizon reported a 0.6% year-over-year sales increase to $32.8 billion, it missed the $33 billion analyst estimate. The company’s adjusted EPS of $1.15 met expectations, with wireless service revenue growing by 3.5%, but Business segment revenue fell by 2.4%, contributing to the stock’s decline in the early session.
Several major companies are set to release earnings this week. On Tuesday, Tesla and Alphabet will report their results. Tesla’s shares surged this month despite a decline in vehicle production and sales. Investor enthusiasm is led by expectations around the company’s products. Alphabet’s results could be driven by strong search and cloud performance.
