U.S. employment data and a batch of corporate results this coming week will keep equity investors on edge over the direction of the stock market, which has been buffeted by geopolitical tensions, uncertain interest-rate policy and sizable moves in heavyweight technology shares.
The S&P 500 gained for the week, after some big daily swings, and was roughly 1.6% below the benchmark index's June 2 record high. Investors were digesting contrasting earnings results from megacap companies whose massive capital spending has been at the heart of the bullish AI trade this year. Microsoft shares posted their biggest single-day percentage jump since 2008 after its upbeat forecast on cloud growth, while Meta Platforms tumbled after it reported a plunge in cash flow. The Federal Reserve's monetary policy meeting and resulting "hawkish hold" on Wednesday also left investors unclear about the implications for stocks amid what many said were mixed messages over the central bank's plan for reining in inflation.
