Three of the biggest and most important technology companies in the world are expected to show healthy growth when they report earnings this week.
Normally that would be considered a catalyst to stabilize the wobbly stock market. But for Wall Street, that all depends on two data points: How much money they’re spending on artificial intelligence and when it will start to pay off in a meaningful way. And based on the violent market reaction to Meta Platforms’ rising capital expenditures last week, the response to any disappointment likely won’t be forgiving.
Investors have “absolutely no patience right now for higher capex,” said John Belton, a portfolio manager at Gabelli Funds. “The stock market can whistle past the graveyard for some time, but eventually it’s going to have an impact or at least create a more fragile market.”
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