US equity market investors will focus on earnings while watching for any further deterioration in the big-tech trade, as well as monitoring the jobs data, midterm elections, and Iran geopolitics this week.
* Apple (AAPL), Palantir Technologies (PLTR), Advanced Micro Devices (AMD), Arista Networks (ANET), Arm (ARM), and Qualcomm (QCOM) are among the firms reporting quarterly results.
* Markets sold off heavily last week after hyperscalers undermined a lift to risk sentiment from Anthropic's initial public offering announcement and a pause in monetary policy. "Disappointing tech earnings drove stocks lower and sparked a flight to quality in [US Treasury], serving as one of the biggest catalysts of the week," a Jefferies note said late Friday.
* Treasury's quarterly refunding announcement, ISM manufacturing and services PMIs, job openings, and nonfarm payrolls are among the data due this week. "We also expect a busy calendar of [Federal Reserve] speakers sharing their views on the recent FOMC decision" this week, the Jefferies note said.
* The US midterm elections will be held on Tuesday. If the margin between the winners and losers is tight, then the overall composition of Congress may hang in the balance for a while, according to a Scotiabank note Friday.
* "The aftermath [of the results] could inform risks to trade policy, geopolitical risk with sabres rattling over Iran and other theatres, and fiscal policy plus broad regulatory stances including toward AI," the Scotiabank note said. "The immediate aftermath may include escalation of US strikes against Iran after the vote."
* Iran said if the US accepts its demands, "both security will be restored to the Strait of Hormuz and the negotiation process will begin in a short period of time," Al Jazeera reported early Monday. President Donald Trump said the war on Iran will end "very soon one way or the other," warning Tehran will either make a deal or "the hammer" will come down, the news report said.
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