MarketAxess stock has been in a steep decline this year and is now hovering near its lowest level in more than a decade. Shares were trading at $114.24 on Monday, down 81% from their all-time high, wiping out much of the company’s value as its market capitalization plunged from more than $21 billion to about $4 billion. 

The key question now is whether its upcoming earnings report can provide the catalyst the stock needs to stage a meaningful rebound.

MarketAxess stock has plunged as growth concerns remain

MarketAxess is a top American financial services company that is used by some of the top firms in the financial services industry globally. It provides an electronic trading platform that connects institutional investors and broker-dealers to trade bonds and other fixed-income securities. It has over 2,000 clients globally.

MarketAxess stock price has been in a strong free fall in the past few months as concerns about its growth have remained. Its most recent results showed that its business continues growing, with demand for fixed-income securities gaining traction. 

READ MORE: ServiceNow stock forecast ahead of earnings: buy, sell, or hold?

The results showed that its revenue jumped by 12% to $233 million, driven by a 12% jump in commissions and a 10% increase in services. Its business outside of US credit jumped by 20% during the quarter.

Other parts of the business did well, with its net income margin rising to 33.5% from 7.2% in the same period last year.

Still, analysts are concerned about its revenue growth. For example, its upcoming report is expected to show that its revenue dropped by 1.26% in the second quarter to $216 million. 

Analysts expect MarketAxess to report earnings per share of $1.86, down from $2.00 in the same quarter last year. On the positive side, the company has a long history of outperforming analysts’ estimates, suggesting its actual results could come in stronger than expected.

Another positive is that it has become a bargain company. For example, the forward price-to-earnings ratio has dropped to 14.3, much lower than the five-year average of 35. Similarly, the forward price-to-sales has moved to 4.52, which is also lower than the five-year average of 12.

Although most Wall Street analysts have lowered their price targets for MarketAxess, their forecasts still imply meaningful upside from current levels. Piper Sandler has a price target of $128, while Morgan Stanley sees the stock reaching $129. UBS is the most bullish with a $200 target, and Barclays expects the shares to climb to $132.

MKTX stock price technical analysis

MarketAxess stock chart | Source: TradingView

The weekly chart shows that the MKTX stock has been in a strong sell-off and is now trading at its lowest level in years. It has already moved below $189, the lower side of the descending triangle pattern. 

The stock has also fallen below $158, its lowest level in November last year. It remains below all moving averages.

On the positive side, the Relative Strength Index (RSI) has moved to the oversold level of 28.20. It is also nearing the oversold zone of the Murrey Math Lines tool. 

Therefore, with pessimism rising, there is a likelihood that the stock will rebound, especially if it releases a better earnings report. If this happens, the stock may rebound and hit the ultimate support level of the Murrey Math Lines tool.

READ MORE: Intel stock could be at risk of hitting $75 as Q2 earnings loom

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Nvidia (NVDA) stock traded modestly higher on Monday, but investor attention is increasingly shifting toward the upcoming earnings season, where major technology companies are expected to provide fresh updates on artificial intelligence spending.

Shares of the AI chipmaker rose 0.93% to $204.69 on Monday, although the gain trailed the 1.8% advance in the PHLX Semiconductor Index.

Nvidia has underperformed the broader market, with the S&P 500 posting a 9% year-to-date gain against Nvidia’s 8% gain.

The stock had declined 2.2% on Friday and narrowly held onto its position as the world’s most valuable publicly traded company after Apple briefly overtook it by market capitalization before Nvidia regained the lead.

With Nvidia scheduled to report earnings later in the season, investors are looking to its largest customers for signals on future AI infrastructure spending.

Alphabet is set to kick off earnings for major technology companies on Wednesday, making its results an early indicator of whether hyperscalers remain committed to investing heavily in AI hardware.

AI spending outlook remains the key catalyst

Wall Street continues to view spending plans from large technology companies as the biggest near-term catalyst for Nvidia shares.

Strong commitments to AI infrastructure could reinforce demand for Nvidia’s processors, while any signs of slower capital expenditure may increase investor concerns following the recent pullback in semiconductor stocks.

KeyBanc analyst John Vinh acknowledged Nvidia’s leadership position but noted that investors remain cautious about several factors affecting sentiment.

“Street sentiment on the name is mixed, while Nvidia is the clear leader in Gen ai, concerns surround delays in Vera Rubin ramp timing and increasing competitive pressures,” Vinh wrote in a research note on Sunday.

Vinh maintained an Overweight rating on Nvidia stock with a $330 price target.

Competition within the AI hardware market also continues to intensify.

Startup Etched, which develops chips designed for AI inference workloads, is reportedly preparing to quadruple its valuation to approximately $20 billion in a new funding round led by existing investor Jane Street, according to a Wall Street Journal report.

Wall Street remains constructive despite sector volatility

Despite recent volatility across semiconductor stocks, several Wall Street firms continue to express confidence in Nvidia’s long-term outlook.

Oppenheimer included Nvidia and Lam Research among the largest companies featured in its latest “best of the best” momentum screen.

The firm’s proprietary Momentum Overlay scoring system ranks stocks based on risk-adjusted returns over six-, nine-, and 12-month periods while excluding the most recent month.

According to Oppenheimer, companies included in the screen carry Outperform ratings and Buy trend assessments.

Morgan Stanley also described the recent semiconductor selloff as an attractive buying opportunity.

According to a CNBC report, Morgan Stanley analyst Joseph Moore said the firm’s preferred AI investments remain compute-focused companies such as Nvidia and Broadcom.

While maintaining its preference for AI compute leaders, Moore also said memory stocks have become increasingly attractive following the recent correction, describing them as a “compelling entry point.”

The upcoming earnings season is expected to provide investors with greater clarity on enterprise AI demand, capital spending plans, and whether Nvidia’s largest customers remain committed to expanding their AI infrastructure investments.

Those updates could play a significant role in determining the next direction for Nvidia shares.

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Alphabet (GOOGL) shares climbed about 3% on Monday after a report said Google is developing a new AI server chip designed specifically to run its Gemini models more efficiently.

According to The Information, the chip, internally codenamed “Frozen v2,” would permanently embed parts of Gemini’s architecture into the silicon.

The design is intended to reduce the amount of computation and data movement required to process AI queries, potentially improving efficiency while lowering power consumption.

Alphabet responded to the report by emphasizing its ongoing investment in AI hardware innovation.

Its teams are “constantly researching and experimenting with new innovations to deliver maximum performance and efficiency for our users and customers” and “while not every project moves into production, this rigorous exploration is central to our full stack approach.”

“By co-designing our hardware and software from the ground up, we ensure our systems are integrated and highly optimized for real-world workloads,” continued the statement.

The stock was trading 1.3% higher at the time of writing.

Frozen v2 targets greater AI efficiency

Unlike Google’s Tensor Processing Units (TPUs), which are designed to support a broad range of artificial intelligence models, Frozen v2 is reportedly being built exclusively for Gemini.

According to The Information, Google engineers believe the chip could deliver between six and ten times more tokens per unit of power than the company’s latest TPUs.

Rather than replacing Google’s general-purpose AI processors, Frozen v2 is expected to become a specialized addition to the company’s custom-chip portfolio.

The report said Google is targeting deployment around 2028, with the project intended to help address internal compute shortages that have reportedly limited the company’s cloud capacity.

Last month, Google reportedly agreed to pay SpaceX nearly $1 billion per month to help meet enterprise computing commitments.

The trade-off, according to the report, is flexibility.

Frozen v2 would remain effective only if future Gemini models continue using the same underlying architecture.

Google reportedly views the project as partly a trial run and does not expect to manufacture the chips at the same scale as its TPUs.

AI competition continues to intensify

Google’s hardware ambitions come as its AI business faces growing competitive pressure.

Recently, a Bloomberg report said the next Gemini Pro release has been delayed.

Google has also lost several senior researchers to competitors.

Chinese AI developers have also gained traction, with their models now accounting for 45% of token usage among US companies.

Recent releases from Moonshot AI and Alibaba have further narrowed the performance gap with leading US AI models.

Meanwhile, Google DeepMind Chief Executive Demis Hassabis is on Capitol Hill this week advocating for a federally overseen, industry-funded AI watchdog modeled after FINRA to evaluate advanced AI systems for national security risks before deployment.

Wall Street remains constructive on Alphabet

Google continues expanding its in-house AI hardware efforts as it seeks to reduce dependence on Nvidia while lowering the cost of running Gemini.

Earlier this year, the company introduced its eighth-generation TPU and has increasingly marketed its chips to external cloud customers, including a multibillion-dollar agreement to supply TPUs to Meta Platforms.

Google has also approached other cloud providers that have traditionally relied on Nvidia GPUs.

Separately, BMO Capital raised its price target on Alphabet to $455 from $435 while maintaining an Outperform rating.

The firm increased its Google Cloud estimates for the fourth quarter and fiscal 2027, citing stronger cloud demand, expanding capacity and a substantial backlog.

However, BMO also noted that questions remain regarding Gemini model performance following reports that Gemini Pro 3.5 has been delayed as it falls short on certain benchmarks.

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UK stocks closed lower on Monday as investors weighed continued geopolitical tensions in the Middle East alongside the appointment of Andy Burnham as the United Kingdom’s new prime minister and the formation of his cabinet.

The FTSE 100 declined 0.7%, marking its biggest one-day fall in about two weeks.

The FTSE 250 slipped 0.3%, while the small-cap index eased 0.2%.

Investor sentiment remained subdued as the United States carried out its ninth consecutive day of strikes on Iran and Yemen’s Iran-aligned Houthis announced a naval blockade on Saudi Arabia, adding to concerns over regional stability and global energy markets.

Burnham appoints senior cabinet ministers

Burnham began assembling his new government shortly after taking office, naming a mix of experienced ministers from Sir Keir Starmer’s administration and several longtime allies.

John Healey returned to the cabinet as chancellor, less than two months after resigning as defence secretary over disagreements about defence spending plans.

Healey had argued the previous government needed to commit more resources to national defence and now faces the challenge of addressing an estimated £5 billion gap in the defence spending programme inherited from the previous administration.

Ed Miliband was appointed foreign secretary after serving as energy secretary under Starmer.

A former Labour leader, Miliband has been a prominent advocate for the UK’s net-zero agenda and continues to support the government’s green energy transition while moving into one of the country’s most senior diplomatic roles.

Shabana Mahmood retained her position as home secretary, continuing responsibility for immigration, national security and policing.

Mahmood has developed a reputation within Labour as a strong advocate of tighter immigration policies while remaining one of the party’s most senior cabinet members.

Louise Haigh, one of Burnham’s closest political allies, was appointed chancellor of the Duchy of Lancaster, first secretary of state and Cabinet Office minister.

She will oversee the newly created Number 10 North unit, which Burnham has said will focus on devolving power and supporting regional economic development.

Markets assess fiscal outlook

Investors are now focused on the economic direction of the new government.

The appointment of John Healey as chancellor comes at a time when Britain faces tighter fiscal conditions, rising borrowing costs and heightened geopolitical uncertainty.

Long-dated UK government bond yields moved higher during Monday’s session, with the yield on the 30-year gilt reaching its highest level in two months.

The market is also assessing how the new administration will balance spending commitments with a challenging fiscal backdrop after Burnham pledged to introduce measures aimed at easing pressure on households.

Rate-sensitive sectors lead declines

Interest-rate-sensitive sectors were among the weakest performers on Monday.

Homebuilders led losses across the FTSE 350, falling 3.5%, while utilities declined 1.4% as higher bond yields weighed on defensive sectors.

Pharmaceutical and biotechnology shares also weakened, with AstraZeneca falling 1.7%.

Banks lost 0.7%, while industrial metal miners dropped 1.1% amid broader risk aversion.

Airline stocks came under pressure after Ryanair reported that quarterly profit fell by about one-third due to higher fuel costs and lower fares. Wizz Air declined 2.9%, while British Airways owner IAG and easyJet each slipped about 1.4%.

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US stocks ended mixed on Monday as investors balanced hopes of easing in the US-Iran conflict against uncertainty ahead of a crucial week of corporate earnings.

While semiconductor stocks rebounded from last week’s selloff, broader market sentiment remained cautious.

The Dow Jones Industrial Average fell 297 points, or 0.57%, to close at 51,848.96. The S&P 500 slipped 0.18% to 7,444.19, while the Nasdaq Composite edged down 0.04% to 25,510.27 after trading higher earlier in the session.

Markets remained focused on geopolitical developments after the United States carried out its ninth consecutive day of strikes on Iran.

Investor sentiment improved after reports indicated that intermediaries had continued exchanging messages with Tehran, raising hopes for renewed diplomatic efforts.

Yemen’s Iran-aligned Houthis also announced a naval blockade on Saudi Arabia, increasing concerns about global energy supplies and shipping routes.

Oil prices remained elevated throughout the session.

US crude traded around $83 per barrel, while Brent crude hovered near $89 as markets monitored the potential impact of Middle East tensions on the Strait of Hormuz and broader energy markets.

Semiconductor stocks recover ahead of major tech earnings

Chipmakers recovered after last week’s sharp pullback, helping limit losses in technology shares.

Micron Technology gained more than 1%, while Astera Labs rose over 2%. Teradyne advanced about 3%, and Advanced Micro Devices added roughly 2%. The VanEck Semiconductor ETF also posted a modest gain.

The rebound followed a difficult week for semiconductor stocks after the Philadelphia Semiconductor Index entered bear market territory, closing more than 20% below its late-June record high.

Investors are now looking to upcoming earnings from Intel and Texas Instruments for signs that demand across the semiconductor sector remains resilient.

The broader second-quarter earnings season also gathers pace this week, with Alphabet, Tesla and Intel among the major technology companies scheduled to report results.

According to LSEG data, analysts now expect S&P 500 companies to post year-over-year earnings growth of 26% for the quarter, up from an earlier estimate of 23.7%.

Alphabet gains while investors await broader earnings signals

Alphabet shares rose after reports that Google is developing a new Gemini-integrated server chip designed to improve AI efficiency and reduce computing constraints.

The project aims to optimize performance by embedding parts of Gemini directly into the chip architecture.

Elsewhere, Domino’s Pizza shares advanced after the company reported quarterly revenue that slightly exceeded Wall Street expectations.

Oracle stock fell nearly 4% after CLSA initiated coverage with a Hold rating and warned that the company would need $500 billion to support its expansion till 2030.

Investors largely remained on the sidelines ahead of the week’s earnings releases from technology, energy and consumer companies.

Corporate guidance, particularly from AI-related businesses, is expected to play a significant role in determining whether the recent weakness in semiconductor stocks marks a temporary correction or a broader shift in market sentiment.

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