Big Tech's big week 💪

Much of this depends on how the US economy holds up. Data out on Wednesday showed that US GDP shrank 0.3% in the first quarter – a sharp drop compared to the 2.4% growth of the previous quarter.

Keep in mind, all the tariff turmoil has been muddying the waters. Despite the contraction, economists expect a rebound to around 2% growth in Q2.

This optimism makes sense when you look closer at what drove the decline: a surge in imports as businesses rushed to stockpile goods ahead of tariffs.

Imports subtract from GDP calculations, but they don’t necessarily signal underlying economic weakness.

The larger impact – on businesses and consumers – will likely be clearer over the coming months.

There’s a certain thrill in being invested in one company, sector, or theme. It feels decisive – and if your bet doesn’t pay off, at least you swung for the fences, right?

But the risk with overconcentration is simple: your bet pays off only if your thesis – and timing – are exact. You aren’t just riding on a single investment, but on economic conditions, market sentiment, and more.

The real danger is that the journey can be so gut-wrenching that you bail when things get rough. Big drawdowns can spark emotional decisions, and the worst losses often come when investors exit at the bottom and miss the rebound.

Staying invested beats going all-in only for the market to pivot elsewhere – and a diversified portfolio that can perform across different scenarios gives you the best shot at that.

We haven’t seen a market meltdown this year, but we have seen a reality check. While the Nasdaq and the Magnificent Seven dropped almost 20% due to tariff-related volatility, other assets quietly did their job.

Diversification didn’t just soften the initial blow to US equities, it delivered gains.

All eyes are on whether America's tech giants can deliver strong earnings even as the broader economy shows just enough cooling to keep interest rate cuts on the table. This combination – corporate strength coupled with lower rates on the horizon – could be exactly what's needed to restore market optimism.

While closely related, a company's earnings and its stock price don't always move in tandem. Share prices reflect investors' expectations about future earnings, not just current results.

It’s why a firm can have a strong showing, but see its stock fall if it doesn’t meet expectations, or if its future outlook disappoints.