Tech Stocks Rebound Soothing Greenland-Induced Shivers as Earnings Season Hits Stride

Market Overview - US equity markets experienced volatility last week, with the Cboe Volatility Index (VIX) rising above 20 due to geopolitical tensions, including President Trump's tariff threats and Greenland annexation push [1] - By mid-week, the market sentiment shifted positively as NATO leadership discussions emerged and tariff threats were retracted, leading to a recovery in the S&P 500 and Nasdaq [2] Technology Sector Performance - The Information Technology sector was pivotal in the market recovery, despite Intel's 16% decline following a disappointing Q4 2025 outlook [3] - Nvidia's stock rose due to reports of Chinese tech firms preparing to order H200 chips, while Netflix's strong earnings and an analyst upgrade for Meta Platforms contributed to the sector's momentum [4] - Analysts at J.P. Morgan project double-digit earnings growth (13-15%) for the tech sector over the next two years, driven by an AI supercycle [4] Earnings Reports and Trends - Approximately 13% of S&P 500 companies have reported Q4 2025 earnings, with a blended growth rate of 8.2%, indicating a positive outlook despite geopolitical concerns [5][9] - Netflix reported a significant Q4, surpassing $325 million in paid memberships and forecasting over $50 billion in revenue for 2026 [5] - GE Aerospace's results were disappointing, leading to a 7% drop in shares, while Procter & Gamble saw a 2.5% increase due to strong consumer demand [5] Upcoming Earnings and Market Expectations - The peak earnings season is underway, with major companies like Microsoft, Apple, and Alphabet set to report, which could influence the S&P 500's performance [7][13] - Six S&P 500 companies have confirmed outlier earnings dates, with five indicating potential negative news, while Regeneron Pharmaceuticals is the only one with a positive outlook [11][12] Sector Analysis - The tech sector continues to lead the market, while the Energy sector is projected to report a year-over-year revenue decline, contrasting with the growth in Tech and Materials [9]