Q4 Earnings Outlook: Big Tech Results Shape Market; AI Spending Surge Expected

This week marks the continuation of the Q4 earnings season, with results from Alphabet (GOOG, GOOGL), Amazon (AMZN), AMD (AMD), Qualcomm (QCOM), and Palantir (PLTR) set to be released. As of January 30, 33% of S&P 500 (^GSPC) companies have reported, per FactSet, with analysts estimating a 11.9% rise in earnings per share for Q4. If realized, this would extend the index's streak of annual earnings growth and mark the fifth consecutive quarter of double-digit gains. Expectations for Q4 EPS growth stand at 8.3%, down from 13.6% in Q3, reflecting higher guidance from Wall Street, particularly in the tech sector. Big Tech results and ongoing AI spending remain key drivers, with the Trump administration's policies and a K-shaped economy continuing to shape investor sentiment.