All eyes on Microsoft earnings! | MarketTalk: What’s up today? | Swissquote

Show notes

Both Eurozone and UK PMI numbers hinted at faster-than-expected slowdown in economic activity. Both the euro and sterling retreated against the US dollar.
The Federal Reserve (Fed) starts its two-day policy meeting today, and will highly likely announce a 25bp hike on Wednesday. But what Fed officials will also do is to remind investors that the tightening cycle is probably not juts yet.
US stocks traded higher yesterday with the S&P500 adding 0.40% and Nasdaq 0.14% after its special rebalancing. The US 2-year yield advanced past 4.90% and fell this morning. While the VIX index shows no sign of a particular stress from equity traders, BoFA’s MOVE index is close to 110 level, versus around the 60 level prior to the Q3 of 2021: bond traders remain very much uncertain about the number of additional rate hikes that the Fed could deliver. And there is no line in the sand, the Fed will continue hiking if the US jobs market, consumption, and housing market remain resilient to interest rate hikes.
On the corporate menu, Microsoft is due to announce its Q2 earnings after the bell today. Focus is on whether, and by how much Microsoft benefited from the AI craze and how much AI boosted growth for Azure.
Listen to find out more!