Equities started the day stable, with tech shares driving the momentum following another record high for the Nasdaq on Wall Street. Though some early gains slipped, the Nasdaq closed at a new peak. In July, the index is nearly 3% higher, while the S&P 500 has risen about 1.6%.<\/p>\n
US futures remain mostly unchanged, with no new trade updates. Focus is on this week’s key earnings. Verizon exceeded expectations, raising its full-year profit outlook after a strong second quarter. <\/p>\n
Google\/Alphabet and Tesla are set to report after market close tomorrow, which could influence market sentiment. Their results will be important, especially if there are no fresh trade developments. <\/p>\n
Nvidia’s stock performance continues to impress, but support from other major companies remains essential. This week serves as an initial test before more big tech reports arrive later in the month.<\/p>\n
We see the market’s steadiness reflected in the CBOE Volatility Index (VIX), which has recently hovered around a low value of 13, suggesting complacency. This low volatility environment often precedes sharp moves, especially with major earnings on the horizon. Traders should therefore view this period as an opportunity to position for an expected increase in price swings.<\/p>\n
For the reports from the big names mentioned, options are pricing in a significant reaction. The market is implying a potential one-day move of around 5% for Alphabet and over 7% for Tesla following their results. Given that Tesla has historically seen post-earnings moves exceeding 10%, strategies like long straddles or strangles could be effective for those betting on a large move, regardless of direction.<\/p>\n
The article’s point about the market needing support from more than just one company is crucial. With a recent Bank of America report showing that just five stocks have driven over 60% of the S&P 500’s total return this year, a disappointment could have a broad impact. We believe traders should consider buying protective puts on tech-heavy indices like the QQQ as a hedge against a negative surprise from these upcoming earnings.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Tech shares lifted markets as Nasdaq hit another record; major earnings reports are poised to influence sentiment.<\/p>\n","protected":false},"author":62,"featured_media":16990,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26944"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16990"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}