Stocks and Earnings Surge, Iran Deal May Be Imminent: What to Watch This Week

💡 Markets are poised for a busy week with earnings season in full swing and potential developments on the Iran deal.

The stock market is bracing for a potentially volatile week, with earnings season in full swing and potential developments on the Iran deal.

The S&P 500 ($SPY) has been on a tear, with the index up over 10% year-to-date as investors weigh the prospects of a recession. Companies such as Microsoft ($MSFT) and Alphabet ($GOOGL) are set to report earnings this week, with expectations high for both revenue and profit growth.

Earnings Season Heats Up

Microsoft is expected to report earnings of $2.32 per share, up 14% from the same period last year, on revenue of $49.3 billion. Alphabet, on the other hand, is expected to report earnings of $25.92 per share, up 23% from last year, on revenue of $73.2 billion.

Iran Deal Developments

The Iran deal, which was signed in 2015, is set to expire in May. The US and Iran have been engaged in indirect talks, with the US seeking to extend the deal and Iran pushing for a more comprehensive agreement. A potential breakthrough in the talks could have significant implications for oil prices and global markets.

Oil Prices in Focus

Oil prices have been volatile in recent weeks, with Brent crude ($WTI) trading at around $70 per barrel. A potential extension of the Iran deal could lead to a significant increase in oil prices, while a failure to reach an agreement could lead to a decline.

What It Means for Investors