The Stock Rally Has Stalled. Now Comes Earnings Season

After a recent pullback in stocks, investors are looking to the coming earnings season for clarity on companies’ growth prospects.

U.S. stocks defied expectations to rally in 2023 but have struggled to extend gains into the new year. The S&P 500 shed 1.5% in the first week of January. Tech stocks, which led the market last year, have stumbled, with Apple and Microsoft falling 5.9% and 2.2%, respectively, in the past week.