Market Analysis and Stock Updates: Tech Stocks Poised for Rebound after Joe Biden Announcement

US tech stocks poised to rebound after Biden drops presidential bid

Investors are shifting their focus to earnings as US tech stocks are poised to rebound from their worst week since April following Joe Biden’s decision to end his presidential reelection campaign and endorse Kamala Harris.

According to Bloomberg, market reaction to Biden’s move has been fairly muted so far, with a slight drop in the Bloomberg gauge of dollar strength and the 10-year Treasury yield. Investors had been betting on Trump’s return to the White House, but now they are reevaluating their positions and considering whether the “Trump Trade” is still on.

Nasdaq 100 futures contracts have jumped 1.0 percent, signaling a partial recovery, while S&P futures climbed 0.6 percent. Europe’s Stoxx 600 index also rose more than 1.0 percent after a five-day losing streak.

Major earnings reports are expected this week, with Tesla Inc and Alphabet Inc among the first to report. Analysts will be closely watching for updates on Tesla’s plans for robotaxis and Google’s revenue boost from artificial intelligence.

In premarket trading, Verizon Communications Inc slid after reporting lower-than-expected operating revenue, while CrowdStrike Holdings Inc fell as Guggenheim Securities downgraded the stock following a faulty software update.

In Europe, companies have made a positive start to the reporting season, with 29 percent beating profit expectations. However, Ryanair Holdings Plc cut its outlook for ticket prices, causing its stock to fall. Asian stocks continued to be dragged lower by a weak tech sector.

Traders will be watching economic activity data in Europe, US second-quarter growth, and a Bank of Canada rate decision this week as they navigate the volatility in the markets.