Sara Al-Yasri, financial markets strategist at CFI, said that the US earnings season may be the most important driver for US stock markets in the short term, as investors await companies' ability to continue achieving profit growth despite continued high interest rates and challenges facing the US economy.

She added that the markets are not only focused on the financial results achieved, but also on whether these results confirm companies' ability to maintain profit growth over the coming quarters.

She explained that if the results of companies listed on the S&P 500 index come in better than expectations, despite geopolitical tensions and the strength of the US dollar, this could support indices returning to near their record levels.

She indicated that the Dow Jones index may benefit from this momentum, but the greater gains may go to the Nasdaq index due to the high sensitivity of technology stocks to any positive earnings surprises, especially given the high valuations at which these companies are trading.

Advertising material

Advertising material