As the stock market shows signs of recovery from a rocky start to the year, investor attention is turning to the earnings season as a key driver for continued gains. The S&P 500 Equal-Weight Index has been outperforming the main index in January, suggesting a broader sector participation beyond just the tech industry. Deutsche Bank strategists highlight that a record 68% of S&P 500 constituents have seen gains for six consecutive days, a significant shift from December's narrow market breadth. This broader participation is crucial as the market awaits earnings reports, particularly from tech giants like Tesla, Microsoft, and Meta, which are expected to report on January 29. Strong earnings from these companies are vital for sustaining market momentum, especially given their substantial role in profit growth.
The Invesco S&P 500 Equal Weight ETF (RSP) experienced a slight decline, dropping 0.20% to $181.77 at 09:40 AM on Wednesday, January 22.