Big Tech earnings week: make-or-break for rally

What happened: This week marks a crucial juncture for the market rally, with earnings from the "Magnificent 7" tech giants set to dictate the S&P 500's trajectory. Apple, Alphabet, Amazon, Meta (formerly Facebook), and Microsoft are all reporting this week, April 28-29. Options traders are bullish, betting on these stocks to catch up to the broader market's gains. Wall Street views these earnings as a litmus test for the rally's sustainability.

Market impact: Big Tech's performance will ripple through the market. If earnings disappoint, growth stocks could face a sell-off, as they've led the market's recent gains. Conversely, strong results could validate the rally, benefiting tech-heavy sectors and growth-oriented funds. The S&P 500's record streak could extend or reverse based on these earnings.

What to watch next: The market's next moves hinge on two key catalysts: 1) Earnings from the remaining "Magnificent 7" companies, including Netflix on April 20 and Nvidia on May 25. 2) The Federal Reserve's interest rate decision on May 3, which could influence growth stocks' valuations.