It's the 'most important week' for stock returns (watch chips) - SocGen

Société Générale strategist Manish Kabra warns this week is the most important for U.S. equity returns, driven by a dense docket of corporate earnings and policy signals. He highlights that roughly $29 trillion of market cap—about 44% of the S&P 500—is concentrated in a handful of names, notably tech/chip-related stocks, implying that these firms and their earnings reports could disproportionately move markets. Related chip-linked ETFs showed strong moves (SMH, SOXX) in premarket trade, underscoring sector sensitivity. The bank’s view suggests elevated potential for headline-driven volatility and that outcomes from key earnings and policy communications will likely set near-term index direction.