Key Takeaways From a Better-Than-Feared Start to Earnings Season
- Stock reaction muted as pre-season rally lifts bar for gains
- Big Tech results upbeat so far, but outlook could darken
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Investors have had plenty to cheer this earnings season so far — resilient consumer spending, upbeat Big Tech results and confident economic outlooks from corporate executives. Yet, the stock market is not reflecting the optimism.
The sharp US and European equities rally ahead of results stretched valuations and raised the bar for further gains, but worries about a recession and higher interest rates have capped sentiment.