This week (24-28) the NYSE is expected to remain highly volatile in investors’ vigilance ahead of the Federal Reserve’s regular meeting of the Federal Open Market Committee in January.
The announcement of the performance of major technology companies such as Microsoft, Tesla, and Apple before and after the FOMC meeting can also increase market volatility.
Last week, the three major indexes fell sharply, and the NASDAQ index entered technical adjustments, falling more than 10% from its 52-week high.
The Dow Jones 30 Industrial Average fell 4.58% over the past week, while the Standard & Poor’s 500 Index fell 5.68%. The NASDAQ index fell 7.55% during the same period. The volatility index (VIX), called the Wall Street fear index, exceeded 28, rising to the level in December last year.
The entire technology stock was shaken by the disappointment of Netflix’s performance, which was included in the “FAANG” stock, a large U.S. technology stock.
This week, half of the companies incorporated into the Dow announced their earnings, and Microsoft (25th), Apple (27th), and Tesla (26th) also announced their earnings.
Netflix’s stock price fell far behind in the first quarter of last year due to concerns over subscriber guidance (predictions). Investors are also expected to pay attention to guidance in the first quarter of this year in the performance of other technology companies.
The growth rate recovery is slowing due to the Omicron mutation, and the cost pressure on companies due to inflation is growing. The key is whether there will be a quarterly net profit forecast to dispel such concerns.
At the FOMC regular meeting scheduled for the 25th to 26th, the Fed is not expected to change its policy. However, it is expected to suggest that the asset purchase program can be terminated as scheduled in March and interest rates can be raised immediately.
