Investors have shifted their focus to the likes of Netflix, Tesla, Goldman Sachs, and Bank of America as a busy week of quarterly earnings reports is expected to get underway.
These earnings results are expected to provide some guidance on the direction of the U.S. economy as well as potential actions that the Federal Reserve could take at its next policy meeting in May.
With all three major U.S. indices logging gains last week, banking stocks appeared to be driving this surge, with JPMorgan leading the charge by gaining over 7% on what was its best day of trading since 2020.
“This week, the initial earnings from a few very large banks suggest that the quick work of the FDIC and Federal Reserve in the wake of Silicon Valley Bank’s failure [has] prevented broader damage,” strategists at Bespoke Investment Group commented in a note to clients.
Among the banking and investment stocks that remain in full focus are Charles Schwab, with results set to be released on Monday, and Bank of America and Goldman Sachs, both of whom will release their results on Tuesday.