Q1 Earnings Preview: All About Mag7 As Just 2 Companies Account For Half Of EPS Growth

Earnings season is about to start at a critical time for traders whipsawed by war in the Middle East, concerns around private credit, the disruptive threat of artificial intelligence and central banks that are turning more hawkish by the day.

As Bloomberg notes, both the MSCI World Index and the S&P 500 Index are coming off their worst quarter since 2022, after steep losses in March amid renewed inflation worries with the Iran conflict sparking a surge in oil prices. Data on Friday showed US inflation climbed in March by the most in nearly four years (even as core inflation remained subdued and printed below expectations). Meanwhile, consumer sentiment has weakened.