New York, USA – As markets prepare to open for the week, investors are gearing up for a pivotal round of earnings reports from tech giants like Microsoft, Meta Platforms, and Google parent Alphabet. The past week saw sharp losses across the stock market, with the S&P 500 and Nasdaq composite taking a hit, marking their worst performance in over a year.

One of the standout losers in the market was Nvidia, the AI stock leader, which plunged below key support levels. Chip and AI stocks faced selling pressure following cautious comments from industry players like ASML and Taiwan Semiconductor Manufacturing. Additionally, Super Micro Computer’s stock plummeted after not releasing preliminary results, sparking concerns about overall demand for AI technology.

The upcoming week is filled with anticipation as companies like Tesla, General Electric, Chipotle Mexican Grill, Dexcom, and Caterpillar are set to report their earnings. Investors are closely watching for insights into various sectors such as artificial intelligence, cloud computing, online advertising, and electric vehicles.

In light of recent market conditions, experts advise investors to remain cautious and hold a significant portion of their portfolios in cash. With major indexes and leading stocks showing signs of weakness, it may be prudent to wait for clearer signals of strength before diving back into the market.

As analysts brace for a flurry of earnings reports in the coming days, the tech sector is under the spotlight with questions swirling around Tesla’s growth strategy and Elon Musk’s plans for a next-generation Model 2. The recent price cuts on Tesla vehicles have added another layer of intrigue to the company’s earnings call.

In the ETF world, growth funds like the iShares Expanded Tech-Software Sector ETF and the VanEck Vectors Semiconductor ETF saw significant declines, reflecting the broader market sentiment. With AI hardware stocks taking a beating last week, industry leaders like Nvidia, ASML, and Taiwan Semiconductor faced sharp declines, underscoring the sector’s current challenges.

As the market grapples with uncertainty, investors are advised to tread carefully, keeping a close eye on resilient stocks like GE, Google, and Caterpillar. Building watchlists and monitoring support levels will be crucial in navigating the current market landscape, as earnings season could shape the trajectory of various sectors in the weeks to come.