The violent rotation out of Big Tech has dragged the Nasdaq 100 Index down 8% in just over two weeks, leaving it on the cusp of a correction. Whether it can avoid that dubious milestone will likely come down to earnings from a quartet of companies worth nearly $10 trillion combined.
In a week that also brings a Federal Reserve interest-rate decision, investors will focus primarily on results from Microsoft Corp. on Tuesday, followed by Meta Platforms Inc., Apple Inc. and Amazon.com Inc. over the next two days.
The stakes were already high after a torrid first-half rally for Big Tech left the biggest companies with fat share-price gains and stretched valuations. They’ve become downright critical after Alphabet Inc.’s results last week raised concern that spending on artificial intelligence has gotten too rich relative to near-term returns.
“These earnings are really important,” said Michael O’Rourke, chief market…
