**Big Tech Earnings Under Scrutiny as Alphabet Kicks Off Reporting Season**

Alphabet, the parent company of Google, is set to release its earnings report after the market closes, marking the start of the earnings season for major technology firms. Following closely behind will be Microsoft, Amazon, Meta Platforms, and Apple. The financial community is keenly watching these reports for cues on the broader market's direction.

Venu Krishna, the head of US equity strategy at Barclays, recently shared his expectations with Seana Smith and Brad Smith on Morning Brief, emphasizing the moderation of growth rates for these tech giants. "Everyone is focusing on how the earnings of Big Tech are broadening," Krishna noted. He elaborated that a tapering in Big Tech's growth is not necessarily negative, referring to the scenario as a "half-glass-full" situation.

Krishna pointed out that historically, when valuations of Big Tech companies have adjusted downward, the correlations with the broader market have increased. This suggests that other sectors are not immune to the fluctuations experienced by these tech behemoths.

Highlighting the high expectations set for these companies due to their recent strong performance, Krishna mentioned that an earnings beat of 5% to 6% above Wall Street estimates would be reasonable. He further added, "Anything less than that, I would be disappointed. Anything above that is phenomenal. They will be back in complete control compared to the rest of the market."

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