Tech giants under pressure: Market volatility and stock market outlook

By the end of today’s session, some volatile market movements are expected, as market activity continues to be influenced by mixed corporate earnings and declining yields on government bonds.
After the S&P 500 recorded a small increase, the index is likely to experience pressure during the afternoon trading hours due to disappointing results from tech giants and concerns over the high costs of leading tech companies. This may lead to some correction, especially among stocks of companies like Alphabet and AMD.

On the other hand, stocks of chipmakers like Nvidia and Broadcom may continue to maintain a positive trend, supported by good results and ongoing demand in the industry.
However, concerns about potential difficulties in monetizing artificial intelligence may limit upside potential in the sector and trigger some speculative movements during the day. This is particularly true for companies that are highly dependent on large capital expenditures for AI development.

As for the bond market, the decline in the yield of 10-year bonds could provide some support to stocks, especially amid decreasing expectations for an economic slowdown.
This decline could boost risk appetite among investors, who will take advantage of the lower bond yields and reallocate some of their capital to equities. This may lead to short-term optimism, which will maintain positive pressure on the indices.

Still, the strong corporate earnings of companies like Walt Disney and Johnson Controls demonstrate that certain sectors continue to experience strong growth, which could create opportunities for positive trading movements in these areas.
Disney, in particular, with positive data for its streaming services, could see increased investor interest. This will reinforce the trend of portfolio diversification, with investors moving towards companies that demonstrate a solid economic foundation.

However, weak forecasts for Uber and Snap Inc. may continue to pressure the tech sector.
This could cause further disappointment among investors who were expecting stronger economic results and lead to further corrections in tech company stocks. These companies will face additional pressure due to competition and high costs associated with the development of new technologies.

In the latter part of the session, markets are expected to lean towards some consolidation, as investors will be more cautious in their activity after considering the current results and economic forecasts.