Why Alphabet, Microsoft, Meta and Amazon will be hoping to please investors

He said disappointing results from Netflix and Tesla contributed to this decline.

Commenting on the results, Mr Hunter said: “Netflix revenues were shy of expectations despite having added a significant number of new subscribers, while Tesla spooked investors by suggesting that lower vehicle production and further price cuts were potentially on its agenda.”

However, the performance of the Dow Jones index was more sanguine, according to Mr Hunter .

He added: “The opening to the reporting season has been positive with an estimated 75 per cent of companies reporting so far having beaten estimates.

"The pace of company updates switches into top gear next week, providing further tests of investors’ mettle, with a raft of companies in the spotlight. Technology stocks will be in sharp focus following the strength of gains this year, with the likes of Alphabet, Microsoft, Meta and Amazon hoping to please, while elsewhere the updates also come thick and fast, ranging from Exxon Mobil and Chevron to McDonald’s.”

Mr Hunter added: “In the meantime, further economic data pointed to further tightness in the labour market, with weekly jobless claims falling to 228000, which was not only below the 242000 forecast, but also far shy of the 280000 level which many economists are now pitching as the signal for a slowdown in jobs growth.

"Asian markets currently have their own fish to fry, with investors concentrating on the differing fortunes of Japan and China,’’ Mr Hunter added. “For the latter, the property sector took another hit after warnings from some credit agencies, while the wider problems of the economy were highlighted once more as some small efforts to boost consumption by the authorities left markets unimpressed and looking for larger examples of stimulus.

"In Japan, by contrast, inflation growth remained above target, but the Bank of Japan sees the recent price rises as being driven by temporary factors, which is unlikely to alter its highly accommodative monetary policy.”

In the UK, a softer than expected inflation reading from earlier in the week has provided a welcome boost to markets, particularly the more domestically-focused FTSE250.

Mr Hunter added: “Next week will provide new tests, with a raft of blue chips reporting including the UK banks, which should provide some colour in their response to the recent banking turmoil, the ongoing effects of a rising interest rate environment and also whether loan impairment provisions have been raised given the possibility of recessions this year in some of the developed economies.”