The Paris stock market is starting the week on a gloomy note. It lost nearly 0.4% this Monday morning. This slight decline comes in a tense context, marked by an avalanche of upcoming quarterly results and persistent questions about the health of the global economy.
The fall of technology giants worries stock market players
In the stock market, we all know that The “Magnificent Seven” Nasdaq's stocks have been the driving force behind Wall Street's rise for the past 18 months. However, they are showing signs of running out of steam.
Since mid-July, these tech titans have indeed seen their value fall by more than 12%. This correction raises questions about the sustainability of the growth of the American stock market. Importantly, it could potentially benefit alternative assets like cryptocurrencies.
A crucial week for financial markets
No less than 171 companies from the S&P 500 will publish their results this week. The most anticipated ones nevertheless remain those of:
- Microsoft,
- Meta,
- Amazon,
- Apple.
These four stock market giants alone represent nearly 20% of the weighting of the flagship American index.
In France, Hermès fell by 3%. Which led to a 0.4% drop in the Paris index. Other companies have also seen significant declines, including Vinci and Stellantis.
THE quarterly results Airbus, Danone, L'Oréal, Safran, Schneider and Société Générale will also be published this week.
The FED, arbiter of stock market and crypto trends
The next Fed meeting is scheduled for Tuesday and Wednesday. That said, it is already the focus of attention. Although no rate changes are expected, expert stock market analysts will be scrutinizing any clues about a potential drop in September.
Such a prospect could give new momentum to both stock markets and the crypto market, which is traditionally sensitive to monetary policies.
This week promises to be a pivotal one for the direction of global financial markets (including the stock market). Cryptocurrencies could benefit if traditional stocks disappoint.
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