That would be a major jump from the $72 billion that the Silicon Valley tech giant shelled out last year, as it aims to compete in the artificial intelligence race. ...

S&P 500 (SNPINDEX: ^GSPC) exchange-traded funds (ETFs) are incredibly popular investments, and for good reason. The S&P 500 index itself is a powerhouse, containing stocks from 500 leading U.S. companies. However, this type of investment has a hidden risk, and it may not be as safe and stable as some investors believe. Here's what you need to know if you own an S&P 500 ETF or are considering investing in one. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best ...

Quick Read Amazon (AMZN) eliminated 30,000 corporate roles in 120 days. Leadership explicitly framed cuts as AI-driven automation. Amazon’s Q3 net income rose 36.4% to $21.19B even as capital expenditures reached $35.1B. Microsoft and Meta are also restructuring workforces while investing billions in AI infrastructure. Investors rethink ‘hands off’ investing and decide to start making real money Amazon (NASDAQ:AMZN) just announced 16,000 job cuts worldwide, the second massive layoff in four month ...

Core Insights - The technology sector has had a slow start in 2026, with the Technology Select Sector SPDR ETF (XLK) up only 2.8% year-to-date, while the Invesco QQQ Trust (QQQ) has also struggled despite a rally in memory chip stocks [3][4] - The underperformance of the mega-cap technology stocks, particularly the Magnificent Seven, has kept both XLK and QQQ in a consolidation phase, despite some strength in specific areas of the sector [4][7] - Upcoming earnings reports from Microsoft, Tesla, and Meta on January 28, 2026, are crucial as they significantly influence the major tech ETFs, with Microsoft alone accounting for over 11% of XLK and nearly 14% of QQQ [5][6] Technology Sector Performance - The technology sector's performance is hindered by heavy concentration in underperforming mega-cap stocks, which has resulted in XLK and QQQ remaining stagnant [4][7] - Both ETFs are close to key breakout levels, with XLK approximately 3.2% below its 52-week high and QQQ less than 1% from its all-time high, indicating potential volatility based on upcoming earnings [5] Earnings Reports Impact - The earnings reports from Microsoft, Tesla, and Meta are expected to provide insights into AI-related capital expenditures, which are a central theme for investors looking for disciplined and growth-oriented spending [6][7] - The guidance on AI spending, monetization, and profitability from these companies may determine whether the tech sector breaks higher or remains range-bound [7]

Group 1: Meta - Meta is focusing on significant investments in AI but lacks a cloud business to capitalize on the AI boom, which has raised concerns among investors [2] - The company has reduced its metaverse team and revamped its review program, indicating a shift in strategy [2] - Investors are looking for tangible returns, suggesting that Meta may face challenges in the upcoming year [2] Group 2: Microsoft - Microsoft, with a market cap exceeding $3.5 trillion, is undergoing a transformation under CEO Satya Nadella, who is emphasizing the importance of AI [3] - Nadella has appointed a new advisor to explore the economic implications of AI for Microsoft [3] - The company’s future plans and partnerships, particularly following its restructured agreement with OpenAI, are critical to monitor [3] Group 3: Tesla - Tesla is shifting its focus from traditional automotive business to future projects like the robotaxi service and the Optimus humanoid robot [4] - Elon Musk is promoting future innovations rather than current products, raising questions about investor confidence in unfulfilled promises [4] Group 4: Apple - Apple is taking a partnership approach in the AI space, exemplified by its collaboration with Google Gemini to enhance Siri's AI capabilities [4] - iPhone sales remain a crucial metric, particularly in China, which is its second-largest market [5] Group 5: Alphabet - Alphabet has experienced significant success recently, particularly with the launch of Gemini 3, which has positioned Google as a leader in the AI sector [6] - The company has entered the elite $4 trillion market-cap club and is expected to continue evolving its Search capabilities in the AI era [6] Group 6: Amazon - Amazon announced a workforce reduction of 16,000 employees as part of efforts to streamline operations and reduce bureaucracy [7] - This follows a previous job cut of approximately 14,000 employees, and the company's ability to maintain investor confidence post-reductions will be closely watched [8]

Core Viewpoint - Wall Street's prediction market indicates that the S&P 500 could reach between 7,600 and 7,800 by the end of 2026, reflecting a positive outlook for U.S. equities [1][2]. Market Predictions - Kalshi's prediction market shows that approximately 19% of traders expect the S&P 500 to close between 7,600 and 7,799.99 by year-end 2026, suggesting a continued upward trend for the index [2]. - Major forecasts from firms like Goldman Sachs predict double-digit earnings growth and a mid-single to high-teens percentage increase for the S&P 500 in 2026, with average year-end targets ranging from 7,500 to 8,100 [4]. Current Market Status - The S&P 500 is currently near record highs in the high-6,900s, maintaining its momentum as it approaches 2026 [3]. Earnings Growth and Market Dynamics - Earnings growth expectations are strong, driven by robust corporate profitability, a rebound in deal-making, and ongoing investments in AI [5]. - The Kalshi market operates differently from traditional analyst forecasts, as it prices outcomes based on real money bets, making it sensitive to macroeconomic changes [5]. Recent Market Activity - S&P 500 futures increased by 0.40% ahead of the Federal Reserve's interest rate decision and earnings reports from major technology companies [6].

Core Viewpoint - Amazon announced a reduction of approximately 16,000 corporate employees as part of its efforts to streamline its organizational structure and enhance operational efficiency amid increasing competition in artificial intelligence [1] Group 1: Company Actions - The layoffs are part of a broader strategy to reduce layers of management, strengthen accountability, and eliminate bureaucracy, with the company emphasizing that it does not plan to announce large-scale layoffs every few months [1] - Affected employees in the U.S. will have 90 days to seek new positions internally and will receive severance pay and other transitional support [1] - This round of layoffs brings the total number of layoffs announced by Amazon in the past three months to 30,000, as the CEO has expressed a commitment to reducing the bloated management structure that grew during the pandemic [1] Group 2: Industry Context - Other tech giants have also initiated layoffs, reallocating resources towards artificial intelligence; for instance, Meta Platforms plans to cut over 1,000 positions in its Reality Labs division, while Pinterest aims to reduce its workforce by "less than 15%" [2] - Autodesk is set to cut around 1,000 jobs, and ASML announced a reduction of approximately 1,700 employees despite record orders in the fourth quarter, indicating a trend of layoffs across the industry to enhance agility [2]

Currency Market - The Malaysian ringgit, Thai baht, and South Korean won appreciated as the Bloomberg Dollar Spot Index fell to its lowest since February 2022, reflecting investor caution towards the US dollar amid unpredictable US policymaking [1][12] - The dollar's decline was exacerbated by President Trump's comments indicating a lack of concern over the currency's weakening, which has raised uncertainty regarding the Federal Reserve's independence [3][13] Stock Market - Asian stocks showed mixed results, with South Korea rising while Japan fell; US equity-index futures gained following reports of SoftBank's potential $30 billion investment in OpenAI [2][12] - A significant portion of S&P 500 companies, approximately one-third by market capitalization, are set to report earnings this week, including major players like Microsoft, Meta, and Tesla [11][13] Federal Reserve and Economic Outlook - The Federal Reserve is expected to announce its interest-rate decision soon, with indications that it may halt its rate-cutting cycle due to a steadier jobs market [9][10] - The Fed's messaging is likely to focus on a data-driven approach to future policy decisions, reflecting the current strength of the economy [10][13] Commodities Market - Gold traded slightly below its record high, silver advanced, and West Texas Intermediate crude edged up, all priced in dollars, indicating market reactions to currency fluctuations [8][13]

Market Overview - The S&P 500 and Nasdaq experienced early gains driven by strong performance in Big Tech, while the Dow struggled [2][3] - Major tech companies such as Apple and Microsoft saw significant increases, with Apple rising nearly 2% and Microsoft adding 1.3% [3] - Over 90 S&P 500 companies are set to report earnings this week, including Meta, Microsoft, Tesla, and Apple [3] Sector Performance - Health insurers faced substantial declines, with Humana dropping 18% and CVS Health falling 10% due to a minimal proposed increase of 0.09% in Medicare Advantage payments for 2027 [3] - Precious metals saw a surge, with gold reaching a new high above $5,100, while silver recovered to the $110 level [5] Federal Reserve and Economic Indicators - The upcoming Federal Reserve meeting is a focal point, with expectations for interest rates to remain steady in the 3.5%–3.75% range, while markets are looking for hints on future rate cuts [4] - Futures markets are pricing in approximately two quarter-point reductions by the end of 2026 [4] Trend Tracking Indexes - The S&P 500 reached a new all-time high intraday but could not maintain above the 7,000 level [8] - The domestic Trend Tracking Index (TTI) closed at +7.40% above its moving average, while the international TTI closed at +11.45% above its moving average [9]

Core Insights - The stock market experienced a significant increase as Wall Street enters a crucial week for fourth-quarter earnings, with major tech companies like Apple, Meta, Microsoft, and Tesla set to report their quarterly results [1] Group 1: Market Outlook - The long-term outlook for stocks is expected to remain bullish through 2026, driven by improving earnings across all sectors, marking the first time since 2018 that all 16 Zacks sectors are projected to expand their earnings [2] - Investors are encouraged to continue purchasing stocks in early 2026, focusing on those that have already performed well in 2025 rather than on underperforming stocks [3] Group 2: Stock Screening Strategy - A screening method using the Research Wizard identifies Zacks Rank 1 (Strong Buy) stocks, narrowing down to those with upward price momentum and trading within 20% of their 52-week highs [5][6] - The screening criteria include a PEG ratio of less than or equal to 1, a Price/Sales ratio of less than or equal to 3, and a percentage change in price over the last 12 weeks [10] Group 3: Company Spotlight - Expedia Group, Inc. (EXPE) - Expedia is highlighted as a strong long-term growth stock, benefiting from a booming travel market, with a reported 7% growth in 2024 and an average revenue growth of 37% from 2021 to 2023 [11] - The company is projected to grow its adjusted earnings by 27% in 2025 and 20% in 2026, increasing from $12.11 in 2024 to $18.39 in 2026, with revenue expected to reach $15.56 billion in FY25 and FY26 [14] - EXPE stock has increased by 55% over the past 12 months, with a notable 434% rise over the past 15 years, and a recent pullback of 10% presents a buying opportunity [15]