Hope is building up once again for US tech

North American equities started the week on the right foot as fourth-quarter earnings continue to come in elevating hopes for US companies. S&P 500 and Nasdaq added 4.7% and 8.58% and Canada’s S&P/TSX Composite advanced 6.43% year to date.

Investors are hoping to see tech stocks in better shape this year post their crush in 2022. The layoff from giant tech companies with the latest coming from Spotify with 6% of the workforce layoff and Google and Microsoft letting go of more than 10,000 people gave investors the belief that will be enough savings for tech companies and if their fourth-quarter earnings surprise the markets, it could be a call to end the bear market.

This Idea is of course at the mercy of the US central bank to finish the rate hike cycle, letting the bond and equity markets breathe. There is another 0.25% increase in interest rates expected from both Bank of Canada this week and the US Fed in their upcoming meeting.

The speculations have weakened the US and Canadian dollar against the other world's major currencies. Canadian dollar in particular is more susceptible to lower levels as oil prices slide from their super high levels and the housing market is showing higher signs of weakness.