The Nasdaq 100 rises 1.01% at the opening, leading gains on Wall Street, as the market prepares for a key week of results from giants like Alphabet, Tesla, General Motors, and Intel.
Wall Street has started the week on a strong note. The Nasdaq 100 rose 1.01% at the opening, clearly outperforming the 0.53% of the S&P 500 and the 0.24% of the Dow Jones. The message is clear: investors are refocusing on corporate profits, just as a wave of results begins that will test the market's high valuations.
Alphabet, Tesla, General Motors, and Intel are the key names of the week. These companies must demonstrate that their figures justify expectations. The pressure is particularly intense on the tech sector, which has become the main driver of U.S. indices. Meanwhile, the euro fell 0.17% to 1.14195 dollars, which reinforces the appeal of dollar-denominated assets.
Technology drives the market again
The performance of the Nasdaq reflects that investors are maintaining their bet on tech growth. The rise above 1% shows notable demand for companies linked to artificial intelligence, semiconductors, cloud computing, and digital services.
However, the advance also carries a warning. The more indices depend on a small group of large companies, the greater the risk that a single disappointment could trigger sharp movements. The market not only demands profits: it requires forecasts capable of sustaining accumulated optimism.
Alphabet must prove that the growth of its advertising and cloud business offsets the enormous spending necessary to compete in artificial intelligence. The consequence is clear: any sign of a slowdown could quickly extend to the entire sector.
Tesla faces a decisive examination
Tesla arrives at its results under particularly intense scrutiny. Investors will analyse margins, delivery trends, and the manufacturer's ability to maintain its position amid increasing pressure from Asian competitors.
The group led by Elon Musk is no longer valued solely as an automotive company. A significant part of its market capitalisation depends on expectations related to autonomous driving, robotics, energy storage, and the development of new models.
The worst scenario for Tesla would be to combine lower sales with a new erosion of margins. That scenario would force the market to revise forecasts built on a future growth rate much higher than that of traditional manufacturers.
Alphabet measures the cost of artificial intelligence
Alphabet's accounts will serve as a thermometer for tech spending. The company is allocating billions of dollars to data centres, chips, and artificial intelligence models, a race that has raised investments from major U.S. platforms.
The diagnosis is unequivocal: the market accepts higher spending as long as it is accompanied by increasing revenues. The problem arises when spending advances faster than monetisation.
Analysts will pay special attention to Google Cloud, the advertising business, and investment forecasts. An improvement in margins would reinforce the bullish thesis; a rise in costs without visible returns would fuel fears of a tech capital bubble.
General Motors gauges consumer strength
General Motors will provide a different but equally relevant benchmark. Its figures will allow for an assessment of the strength of the U.S. consumer, vehicle demand, and the impact of financial costs on durable goods purchases.
The automotive sector faces still high interest rates, a costly electric transition, and increasingly aggressive international competition. In this context, the evolution of prices and inventories will be as important as sales volume.
The contrast with the tech sector is revealing. While major platforms can sustain high margins, manufacturers operate with heavier industrial structures. A deterioration in consumption could signal a broader slowdown in the U.S. economy.
Intel seeks to regain credibility
Intel must convince the market that its restructuring process is beginning to yield results. The semiconductor manufacturer has lost ground to specialised rivals and faces multi-billion-dollar investments to modernise its plants.
Investors will monitor the evolution of the data centre business, demand for computers, and the timeline for its new industrial capabilities. It will not be enough to cut costs: the company needs to demonstrate that it can regain competitiveness.
A positive surprise would have a significant effect on the entire chip sector. Conversely, new delays would reinforce the perception that the recovery will be slower and more expensive than expected.
The dollar gains ground
The euro's fall to 1.14195 dollars adds another variable to the scenario. A stronger dollar may benefit international investors with exposure to U.S. assets, but it also reduces the value of revenues earned abroad by American multinationals.
This movement also reflects the differences between the economic expectations of the United States and Europe. Wall Street continues to benefit from a comparatively resilient economy and a corporate concentration that is hard to find in other markets.
For Spanish investors, the week offers opportunities but also risks. The evolution of results will determine whether the markets can maintain the rally or if a correction is looming. What happens in the coming days will set the trend for the rest of the quarter.
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