The US markets are off to a great start, but can they continue the streak

2023 started pretty well for investors across US. Even though there were a few red days, the past week has been pretty well for investors. Especially the tech heavy, Nasdaq Composite. This momentum is necessary for the upcoming weeks and months for investors across the board to recover the losses 2022 brought them.

Big tech earnings have already started and we had Netflix to go first and surprisingly, they did not disappoint as they recorded increase in subscribers than what the analysts at Wall Street had expected. Stock of Netflix rose by more than 8% on Friday when they announced their earnings and the everyone expects or at least wants the other upcoming big tech’s to do the same. Tesla, IBM and Microsoft report their earnings in the upcoming week and it could be a make or break week for the markets.

Obviously earnings play a major role in stimulating the market’s directions but another thing that plays a major role, not just for the markets but for the companies and for economies across the world is interest rates.

The federal reserve is trying to tame down the hot inflation with the help of interest rates and even though it did play out pretty well when the latest economical reports came, they did not help the markets. At all. So the fed meetings and the new rates will be playing a huge role in directing the markets this year as well.

While everyone sees a gloomy 2023 where few even say that a recession is inevitable, there are a lot of institutions and CEO’s that admit that it is not that dark after all, stocks could rally by the end of 2023 or at least improve their positions from where they are now or where they ended in 2022.

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