💥Today's market focus turns to corporate earnings✅

About 36% of the S&P 500 components will release results, technology “seven giants” in Amazon, Microsoft and other four will disclose the Q1 data. FactSet data show that 73% of the companies that have announced earnings exceeded expectations, but the proportion of EPS exceeded expectations this quarter (64%) has been lower than the five-year average, we need to be wary of the “expectation gap” impact. The proportion of EPS exceeding expectations in this quarter (64%) has been lower than the five-year average, and we need to be vigilant about the impact of the “expectation gap”. In addition, the Trump administration's tariff rules (e.g., the adjustment of AI chip trade rules) and General Motors withdrew its earnings test due to tariff uncertainty, which may aggravate the divergence of the sector.

💥Risk and opportunity outlook⏩

*1. Technology main line:* AI arithmetic (Nvidia, AMD) and self-driving (Tesla) are still the direction of funds, but need to guard against the pullback pressure of the Nasdaq indices triggered by less-than-expected earnings reports.

*2. defense configuration:* high dividend utilities (such as Duke Energy) and gold ETF (GLD) can hedge against policy uncertainty; Chinese stocks LZMH, EPSM and Ideal Motors, etc. or benefit from domestic subsidy policy expectations.

*3. Short-term warning:* S&P 500 breaks through 5,550 resistance or open up the upside, but need to pay attention to the chain reaction of Super Micro Computer (-16% after-hours), Snap (-13%) and other performance of the mine stocks.

⏫Conclusion:* The market may maintain short-term oscillations to the upside, but earnings season results divergence and trade policy disturbances will amplify volatility. Investors are advised to prioritize high-quality stocks pushed by the panel, while retaining some cash for potential pullbacks.