Last week, Tesla and Alphabet presented quarterly reports that resulted in a sharp decline on the American stock exchange on Wednesday.
The reports have not quite met expectations and have therefore dragged the entire stock exchange down, says Fjärstedt, who is a currency strategist at Danske Bank.
This week, it's up to four more tech giants in the "The magnificent seven" group to deliver. First out is Microsoft, which will release its quarterly report on Tuesday evening. Later in the week, Meta, Apple, and Amazon will also report.
High Expectations
What you should primarily keep an eye on is how the companies' AI investments are doing, says Jesper Fjärstedt.
This will be the most critical point in the reports as I see it. If they actually make any money from it.
Expectations are high for all companies, and according to Jesper Fjärstedt, there is a risk that they will not live up to them.
There is a clear risk that it will be worse than expected, considering how the previous reports have turned out.
After last week's decline, economist Frida Bratt at Nordnet believes that other companies may move forward their positions on the stock exchange.
Because people are starting to doubt the AI race. But also because interest rate cuts are expected from the American central bank, which could benefit smaller and medium-sized companies in other sectors.
Short-term Worse?
Jesper Fjärstedt says he won't be surprised if there is a stock market slump of five to ten percent after the reports are published. This will, of course, affect small investors.
In the short term, it will get worse for the portfolio. But you mustn't forget that they have still made money since the turn of the year.
It is primarily Microsoft and Apple that weigh heavily and determine how the stock exchange performs, according to Jesper Fjärstedt.
If one of them delivers a good result, there is hope that we can see a stabilization on the stock exchange.
But, he adds, it's not the only thing that determines how the stock exchange performs going forward. Fjärstedt also highlights the interest rate decision from the American central bank Fed, which is coming this week.
Karin Rader/TT
Facts: "The magnificent seven"
TTTT
Seven companies in the technology sector go by the nickname "The magnificent seven".
The companies are: Alphabet (Google), Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.
Four of the companies will publish their quarterly reports this week.
First out is Microsoft on Tuesday. Meta reports on Wednesday. On Thursday, it's Amazon and Apple's turn.
