With the list of headwinds for the stock market, from high interest rates to geopolitical concerns in the Middle East, investors hope that soon-to-be-released third-quarter earnings results from the mega-cap technology companies will boost market sentiment. The biggest U.S technology companies have slashed thousands of jobs and reduced costs, and investors hope the cost-cutting measures will begin to show up in earnings results, giving the overall market a much-needed boost.
The five biggest technology companies in the S&P 500 Stock Index ($SPX) (SPY) include Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA), which account for about 25% of the index’s market capitalization. According to Bloomberg Intelligence, their earnings are projected to jump +34% from a year earlier on average. However, earnings from the S&P 500 are expected to be down -5% without the earnings from the big-five technology company, and roughly unchanged including those tech companies.
