As traders brace for the Q1 earnings onslaught, US stock markets were relatively quiet again on Tuesday. Markets are being led higher by the analyst’s sentiment and rising expectations for Q1 results. As a result of its increase of 0.6%, the S&P 500 reached a new all-time high. There is a risk that the extremely high valuation of the S&P 500 could lead to a sell-the-news response to earnings for Q1 2014.
Today’s trading could take an entirely different tone. Several big banks will be reporting earnings this week, including J.P. Morgan, Goldman Sachs, and Wells Fargo. The Beige Book will also be watched closely by the market for any signs of inflation rising, and there are sure to be some.