Heres Whats Happening in Markets April 22

Markets rise as investors look to tech earnings, key economic data.

Kristin
|
SVP Content / Editor in Chief
|
Reviewed by: etf.com Staff
,
Edited by: Kent Thune

Markets were in the green at midday trading on Monday as investors looked ahead to a slate of tech earnings from the 'Magnificent Seven' to be released this week. Tesla, Meta, Alphabet (Google), and Microsoft will all report corporate earnings this week and investors will look to see if the mega tech companies will manage to keep going full steam ahead. 

SPY, the SPDR S&P 500 ETF Trust, was one of the most active ETFs Monday according to etc.com data. The fund rose roughly half a percentage as investors tried to snap a 6-day decline in the S&P 500. DIA, the SPDR Dow Jones Industrial Average ETF Trust also jumped on Monday, rising about 0.5%.

Ahead of tech earnings, QQQ, the tech-heavy Invesco QQQ Trust, marched higher popping roughly 0.6% by midday. MAGS, the Roundhill Magnificent Seven ETF, which tracks the Magnificent Seven stocks that will be in focus this week, was up close to 0.7% in the middle of the trading day on Monday. 

MAGS has been a star in the market this year as investors looked to the 'Mag 7' (the shinier, newer version of FAANG) to lead the pack in 2024. The ETF has outperformed QQQ which also heavily tracks tech stocks. Year to date, MAGS is up more than 9% while QQQ has only jumped 1.4% since January.

MAGS vs QQQ

Technology ETFs Up on Earnings as TSLA Slides

According to etf.com data, tech ETFs are among the most active Monday. SQQQ, the ProShares UltraPro Short QQQ sank Monday, sliding more than 2%. The fund bets that tech stock prices will drop in the future. SQQQ had the greatest trading volume Monday with more than 95M shares. TQQQ, the ProShares UltraPro QQQ, which looks to tech's upside was on the rise, jumping close to 3%.

But not all members of the Mag 7 are doing well. Tesla, which is expected to report disappointing earnings after the bell on Tuesday, slid on Monday on the news that the automaker would cut car prices. The electric vehicle company is the worst performing member of the Mag 7. The slide in share prices has dragged electric vehicle ETFs that have big weightings of Tesla down with it. Two such funds, the Meet Kevin Pricing Power ETF (PP) and the Consumer Discretionary Select Sector SPDR Fund (XLY), are now underperforming the broader market.

Investors Eye Friday's PCE Report, Q1 GDP

Tech earnings won't be the only thing capturing investor attention this week. Key inflation data, the personal consumption expenditures (PCE) will be released on Friday. The index is the preferred inflation reading for the Fed which will use the data in making decisions about rate cuts at its policy meetings. 

Also on tap is an early readout of first quarter GDP growth. GDP figures will also be watched closely as investors try to determine the future path of rate cuts from the Fed. The stronger the economy (and the more persistent the inflation reading), the less likely the chances that investors will get the first of much anticipated rate cuts. 

Kristin Myers is an award-winning journalist, who covers business and finance news. She is the current Senior Vice President of Content and Editor in Chief of etf.com. Kristin was most recently the Editor-in-Chief of the economics website The Balance, and an on-air anchor and reporter at Yahoo Finance. 

She hosted Yahoo Finance Live daily, providing afternoon coverage and reporting on markets, and the economy in the hours before the final bell. She was also one of the creators and hosts of “A Time for Change,” a weekly program that explores race, diversity, and inclusion in the world of business, finance, and politics. 

Earlier in her career, Kristin helped launch Al Jazeera America, where she produced high-profile guest segments and was part of field teams for special coverage, including the protests in Ferguson, and the funeral of Nelson Mandela in South Africa.

She has also worked with other news organizations including Bloomberg News, MSNBC, and others, in the U.S. and abroad.