
This week AMD, Amazon, and Apple will release their earnings reports. These tech giants will determine the future of the US stock market!
2022-02-28 • Updated
There’s nothing new in markets witnessing sharp crashes and volatility when geopolitical events happen. The initial and immediate reaction to these events is usually the most dramatic. The good news is that the impact is short-lived, lasting only for three months mainly. Although the escalation of the conflict between Russia and Ukraine may be devastating, the truth is that stocks can handle these geopolitical conflicts. We are now witnessing the first meaningful correction in the market after the strong performance in 2021. These types of geopolitical issues provide a good buying opportunity for long-term investors.
According to many analysts, we are in the midst of a structural bullish trend that is likely to continue over the next few years, and corrections will be part of that journey. History shows that 12 months after events like the current crisis, the market moves upwards. The markets' performance after the major geopolitical or historical events since World War II is much stronger than before. The markets even end the year in the green area most of the time.
However, this does not mean that Wall Street will not suffer from some turbulence and violent volatility in the short term.
From Thursday's trading session and its sharp crash, Wall Street's reversal has been wild. US stocks got rid of heavy losses and closed in the green. The major indices saw a massive comeback from sharp declines during the Friday session. The Dow Jones erased its heavy losses by more than 800 points. The Dow Jones Industrial Average jumped 815 points, or 2.5%, recording its best day since late 2020, after dropping 859 points last Thursday. S&P 500 also rose 1.9%, after falling more than 2.6%. Nasdaq Composite Index rose 1.1%.
Here is why the US stocks are resilient and flexible:
In the end, global markets will remain unstable over the coming weeks. While we may see some short-term volatility, these uncertainties provide strong investment opportunities if a recession doesn’t follow. Therefore, traders may try to take advantage of these corrections and swings.
Don't know how to trade stocks? Here are some simple steps.
This week AMD, Amazon, and Apple will release their earnings reports. These tech giants will determine the future of the US stock market!
Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Tesla, Netflix and Goldman Sachs will publish their earnings reports these week. Here is why you should follow.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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