The S&P 500 has rebounded from a late-March sell-off, led by tech and AI-linked shares. This week, five of the Magnificent Seven report earnings within about 48 hours: Microsoft, Alphabet, Amazon and Meta on Wednesday, then Apple on Thursday.
Microsoft’s results will centre on Azure and whether AI-related demand supports cloud growth, while spending pressures margins. Latest figures: revenue $81.27B (up 16.72% year on year), gross profit $55.30B (up 15.60%), operating income $38.27B (up 20.92%); key levels include support $408–$413 and resistance $435.75.
Key Earnings Focus And Levels
Alphabet will be judged on Search ads, Cloud and AI costs. Latest figures: revenue $114.00B (up 18.19%), gross profit $68.23B (up 22.20%), operating income $36.10B (up 16.64%); resistance is $338.59–$350.15, with support $313.92–$314.96.
Amazon’s focus is AWS as a read on AI infrastructure demand. Latest figures: revenue $213.39B (up 13.63%), gross profit $103.43B (up 16.34%), operating income $26.23B (up 22.71%); support is $252.90–$258.60.
Meta is expected to link AI spending to ad performance. Latest figures: revenue $59.89B (up 23.78%), gross profit $48.99B (up 23.85%), operating income $24.75B (up 5.48%); resistance sits near $720.82 and $736–$740.
Apple’s focus is iPhone demand, Services growth, China sales and AI plans. Latest figures: revenue $143.76B (up 15.65%), gross profit $69.23B (up 18.80%), operating income $50.85B (up 18.72%); resistance is $271.70–$280.90.
Looking back to this time last year in 2025, we saw the market rally into that pivotal earnings week for the Magnificent Seven. That test provided the fuel for the breakout that carried through the rest of the year. Now, in late April 2026, we are in a similar spot with the S&P 500 testing record highs again.
How Traders May Position Into Earnings
The environment today is more tense, however, as the March 2026 PCE inflation report came in at a stubborn 2.7%, keeping the Federal Reserve from signaling any rate cuts. With the unemployment rate holding firm at 3.8%, the market is now pricing in a “higher for longer” interest rate scenario. This makes the upcoming earnings reports even more critical for justifying current stock valuations.
Last year, Microsoft’s value was tied to Azure’s growth, a theme that continues today. Traders are pricing in a significant move, as Azure’s results are a direct indicator of corporate AI spending. Given the stock has been consolidating, buying straddles or strangles could be an effective way to play a large earnings-driven move without betting on the direction.
For Alphabet, we saw the 2025 concerns about AI cannibalizing its Search business prove to be overblown, though AI spending did impact margins. The stock has been range-bound, which has pushed implied volatility down ahead of its report. This setup could make selling out-of-the-money puts an attractive strategy for those willing to bet that key support levels will hold.
Amazon’s breakout last year was confirmed by strong AWS performance, and that business remains its primary growth engine. The stock has since established strong support, making it a favorite for institutional investors. Bullish traders might look at call debit spreads to play for a move higher while defining their risk and lowering their cost.
We remember how Meta needed to prove its heavy AI spending would translate to stronger ad revenue, which it successfully did throughout late 2025. Now, with the stock at much higher levels, questions about the sustainability of that spending are resurfacing. The high implied volatility suggests that selling an iron condor could be a viable strategy to profit if the stock stays within a predictable range after the report.
Apple was the odd one out in last year’s AI-focused market, and while it has since rolled out its own AI strategy, it is still perceived as playing catch-up. Its stock has underperformed its peers over the past six months, reflecting investor skepticism. Because its implied volatility is relatively lower, buying protective puts could be a cheaper way to hedge against any weakness in its iPhone or China sales numbers.
