US OPEN: Quarterly Earnings Support U.S. Stock Gains

Quarterly Earnings Season Confirms the Strong Health of the U.S. Stock Market

Among S&P 500 companies that have already reported, nearly 70% of revenues exceeded analysts’ forecasts, and as many as 85% of firms reported higher-than-expected earnings—a level of surprises not seen in roughly four years. These results demonstrate that companies are effectively managing macroeconomic challenges, such as rising raw material costs, supply chain disruptions, and inflationary pressures, while maintaining growth momentum in key areas of their operations.

In the coming days, investors’ attention will focus on the remaining Mag7 companies—Apple, Microsoft, Amazon, Alphabet, and Meta. The results of these companies significantly influence stock indices and largely reflect the overall health of the technology and innovation sectors. Positive surprises in this segment could support record levels of the S&P 500 and Nasdaq 100, whereas weaker results may increase market selectivity and trigger corrections in valuations of companies more sensitive to economic cycles.

At the same time, investors are closely watching the Fed’s decision, which is a key factor affecting market sentiment. Current pricing implies a roughly 25-basis-point rate cut, introducing cautious optimism, particularly in the technology sector and in companies dependent on growth financing. On the other hand, any signal of maintaining a restrictive monetary policy or indicating continued inflationary pressure could lead to corrections and higher selectivity in investments.

In short, the upcoming reports from the largest companies, including the Mag7, combined with the Fed’s decision, will be key factors shaping the direction of the stock market in the coming days. Investors should combine quarterly earnings analysis with monitoring monetary policy, macroeconomic indicators, and technical signals to assess which market segments have the greatest growth potential and where greater caution is warranted.

US500 (H1 Interval)

S&P 500 futures show a clear and stable upward trend, continuing since mid-October. The price is moving within a well-defined ascending channel, indicating buyer dominance and a steady inflow of demand. EMA 15, 50, and 100 confirm the market’s strength, with the short-term EMA remaining above long-term averages, signaling trend durability. The RSI, at around 71, suggests slight overbought conditions, which could lead to a short-term correction or consolidation but does not threaten the overall trend. The current price near the upper channel boundary indicates the possibility of a temporary pause, though bulls still control the market.

Corporate News:

• UnitedHealth (UNH.US) is up about 0.3% after third-quarter results significantly exceeded expectations. Revenue rose 12% to $113.2 billion, and earnings per share were $2.59 (adjusted $2.92). The company also raised its 2025 full-year earnings forecast to at least $16.25 per share, slightly above market consensus. Despite cost pressures, UnitedHealth is effectively managing expenses and investing in medical technology development, which is creating positive investor sentiment.
   
• SoFi Technologies (SOFI.US) is down around 2% despite strong Q3 results and record user growth on its platform, with nearly a million new members. The company raised its 2025 earnings forecast to $0.37 per share, exceeding prior projections, reflecting dynamic growth and increasing interest in digital financial services.
   
• Amazon (AMZN.US) is up about 0.6% following announcements to cut around 14,000 corporate jobs as part of a restructuring aimed at simplifying the organization and focusing on key segments such as AWS cloud and AI. Despite the layoffs, investors view the move positively as a step to increase efficiency and competitiveness.
   
• Microsoft (MSFT.US) gained more than 3% after announcing an expanded partnership with OpenAI. Microsoft is supporting OpenAI’s transformation into a public-benefit organization and increasing its investment in the company, now valued at around $135 billion. This strategic move highlights Microsoft’s commitment to AI development and its integration into its own products, which has been well received by the market.
   
• Confluent (CFLT.US) shares rose 11% after reporting Q3 2025 results that exceeded market expectations. The company, specializing in real-time data streaming platforms, posted revenue of $298.5 million, up roughly 19% year-over-year and above analysts’ estimates of $292.5 million. Adjusted EPS came in at $0.13, 33.6% above expectations of $0.10. The stock’s rise reflects positive investor reaction to solid quarterly results.