US stocks set to open higher as market could recover from tech dip – London Business News | London Wallet

US stocks are expected to open higher as investors might buy the dip following a tech-driven decline.

Major tech stocks like Meta, Microsoft, and Nvidia ended lower on Thursday, while Alphabet fell for the second consecutive day, reaching its lowest point since May.

Disappointing tech earnings contributed to the dismal performances.

However, better-than-expected US GDP growth of 2.8% for the second quarter could support sentiment. At the same time, small-cap stocks could continue to perform well as investors expected monetary policy to start softening in September.

The stock market could see an improved performance if interest rate cuts materialize as expected. In this regard, today’s PCE data release could affect sentiment and could fuel some volatility as investors react to the data in particular in case of a surprise.

Investors could then turn to upcoming major earnings releases next week. Big tech companies earnings releases like Microsoft, Meta and Apple could help revive the technology sector if thei results are better than expected. Earnings releases from Intel, Qualcomm and AMD could also help investors gauge demand levels for chips.