Around 70 S&P 500 companies are set to report earnings next week, including Tesla, Meta Platforms, Procter & Gamble and Texas Instruments. The earnings season is expected to show a 29% blended earnings growth rate, with 85% of companies that have already reported beating expectations. However, small caps entered correction territory this week, and analysts are concerned about the impact of higher interest rates, the U.S. fiscal deficit and a potential slowdown in artificial intelligence spending. The VanEck Semiconductor ETF experienced a ninth consecutive day of declines for the first time since 2006. A 5% pullback by year-end could occur according to some specialists.
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