DeVere Group anticipates that Google and Tesla results will determine the direction of the Wall Street market.

Wall Street could continue its path to new highs this summer if big tech companies maintain their strong second-quarter results. In this regard, this week will be decisive, with Alphabet (Google's parent company) and Tesla reporting earnings. "If results are strong, we expect new highs. If not, we expect turbulence. But either way, this should be the week where direction is decided," warns Nigel Green, CEO of financial consultancy DeVere Group.

"After the S&P 500 and Nasdaq hit all-time highs on Monday, driven by the strength of Alphabet, Amazon, and other tech megacaps , markets are on a knife-edge, awaiting confirmation that the sky-high valuations are supported by real results," the financial consultant emphasizes.

"If profits hold up, especially from the industry's biggest names, the rally has legs. If they fail, we could see a hard reset ," anticipates DeVere Group CEO Nigel Green.

The DeVere Group states that with the US stock index, S&P 500, showing strong performance in 2025 and trading above its long-term averages, the "pressure is now" falling directly on the magnificent seven (Amazon, Alphabet, Meta, Microsoft, Tesla, Nvidia, Apple) to justify market confidence.

"Investors are betting on tech companies to regain leadership. The bar is high, and the risks are even higher. Alphabet and Tesla aren't just reporting this week: they should set the tone for the rest of the market," anticipates Nigel Green.

The DeVere Group points out that this earnings season, for the second quarter, 86% of S&P 500 companies that have already reported results managed to beat expectations. "But with the concentration in megacaps at an all-time high, disappointing results from one or two companies could derail momentum ."

"There's no room for error. These stocks are extremely dominant. If they stumble, the rest of the index will feel it. Alphabet is still the benchmark for digital infrastructure and artificial intelligence. Tesla is different. It's volatile by nature. But what Elon Musk [Tesla's creator] is building around autonomy and robotics has the potential to reset the narrative, if it goes well," emphasizes the CEO of DeVere Group.

The DeVere Group also says that although the macroeconomic environment marked by volatility in tariffs, elections, and speculation on interest rates continues to mark the markets, such factors are not preventing the appreciation of these same markets.

"Wall Street is ignoring the noise. This is a market driven by microdata: profits, innovation, execution. That's why this week is so important," reinforces Nigel Green.

The DeVere Group CEO also points out that the S&P 500 is currently trading at a premium in terms of valuations. "The S&P 500 currently trades at a forward P/E of 22 ( forward price / earnings ), compared to the 10-year average of 18.4. This premium can only be defended by above-average performance," said Nigel Green.

"We're paying more for stocks because people believe in what's next. That belief needs to be validated, starting this week," emphasized the CEO of DeVere Group.

The DeVere Group noted that estimates point to big tech companies driving most of the earnings growth in the second quarter. "14.4% for the Magnificent Seven versus 3.4% for the rest of the index," the company notes.

"It's a two-speed market. If tech companies lead, the S&P 500 wins. If they falter, there's no other company big enough to offset the losses," warns Nigel Green.

The DeVere Group points out that although sectors such as finance and healthcare are experiencing stable results, these sectors lack the weight and momentum of large technology companies.

"Tech companies aren't just outperforming. They're leading the rally . That's why this earnings season isn't just another checkpoint ; it's a referendum on market leadership," says Nigel Green.

"If the results are strong, we expect new highs. If not, we expect turbulence. But either way, this should be the week when direction is decided. We're watching the next chapter of this bull market being written in real time," reinforces the CEO of DeVere Group.