Top US Stocks to Watch as Earnings Season Tests the Rally

Investors have been jumping between AI infrastructure stocks and safer picks like utilities, oil companies, and warehouse retailers. April has been a bit more stable, but things are still far from calm.

As we start the week of April 13, markets are looking more positive after bouncing back from March’s slump. Lower volatility, easing concerns about the Middle East, and hopes that earnings season will give a clearer picture of corporate health have all helped the rally.

Looking at the numbers: the S&P 500 is near 6,817, QQQ is around 611, the Russell 2000 ETF is close to 261, the VIX is below 20, and the 10-year Treasury yield is about 4.3%. This shows investors aren’t panicking, but they’re still cautious about inflation and interest rates.

This week’s focus is on three things: inflation data, bank earnings, and whether companies are still spending on AI.

April often rewards investors for simply surviving March. Historically, the month has been positive for the S&P 500, but 2026 has already reminded markets that seasonality is no shield against oil shocks, inflation fears, or geopolitical headlines.

The main macro event this week is the March producer price inflation report, which comes out on Tuesday. If PPI is lower than expected, it could ease concerns that oil prices are driving up inflation. But if it’s higher, bond yields may rise, and growth stocks could feel the pressure again.

Q1 earnings season also gets underway, starting with the big banks. What they say often matters more than the numbers themselves. Investors are looking for signs that consumers are still spending, loans are growing, and businesses are staying active despite higher rates and global uncertainty. Goldman Sachs, JPMorgan, Citigroup, Wells Fargo, and BlackRock are all in the spotlight.

Later in the week, focus turns to semiconductor companies and top growth stocks. Updates from Taiwan Semiconductor, ASML, and Netflix will show whether AI spending remains strong or if investors are starting to doubt how quickly that spending translates into profits.

Banks are watched first because they still reflect the overall health of the economy.

JPMorgan Chase is important because it’s seen as the leading indicator for the banking sector. Investors will look at its net interest margins, loan growth, and management's comments on how consumers are holding up.

Goldman Sachs is important for another reason. It’s more tied to deals, trading, and capital markets. If it reports strong results, it could mean institutional activity is picking up.

Citigroup, Wells Fargo, and BlackRock help complete the financial picture by showing trends in credit quality, deposits, wealth management, and fund flows.

In tech, the main focus is still on AI infrastructure.

Taiwan Semiconductor Manufacturing and ASML Holding sit near the centre of the global chip supply chain. If either company suggests hyperscaler demand is slowing, markets will hear it loudly.

That’s why even companies not reporting this week, such as NVIDIA, Microsoft, Broadcom, and AMD, will still be closely watched.

For consumer stocks, Netflix could be one of the week’s top growth stories. Investors will pay close attention to its subscriber numbers, advertising growth, and content spending.

Defensive stocks like Johnson & Johnson, Walmart, and Costco are also in focus, as investors still prefer companies with steady demand and strong pricing power.

If oil prices keep rising, Exxon Mobil and Chevron could continue to be top performers among large-cap stocks.

Over the past two years, investors have mostly focused on mega-cap tech. Any company with an AI angle, data centre story, or futuristic announcement attracted investment.

That has changed in 2026.

Industrials, consumer defensives, and energy have quietly become some of the market’s strongest-performing groups. Investors are looking for businesses tied to power demand, infrastructure spending, pricing power, and stable cash flows rather than simply paying any price for growth.

Caterpillar and GE Vernova have stood out among industrial stocks because they’re closely linked to trends like electrification, capital spending, and energy infrastructure.

Walmart and Costco continue to benefit from their steady growth and strong pricing power.

In the energy sector, Exxon Mobil and Chevron have clearly benefited from higher oil prices and increased geopolitical risk. According to Morningstar, industrials, consumer defensives, and energy have been some of the biggest drivers of market gains this year.

The most positive scenario for this week is simple.

Banks report solid numbers, PPI comes in softer than feared, and semiconductor companies confirm that AI spending remains strong. That would likely help broaden the rally beyond just a handful of technology names and support financials, industrials, and selective growth stocks.

The negative scenario is just as clear.

If inflation is higher than expected, bond yields rise, and banks warn about slower lending or weaker consumer demand, the market could shift back to oil, defensive stocks, and safer options, while high-growth stocks face more pressure.

That’s why this week is so important. The market doesn’t need perfect earnings—just enough proof that growth, spending, and inflation are heading in the right direction.

Because after a quarter dominated by oil headlines, ceasefire speculation, and AI excitement, investors are finally about to get something more useful than hope: numbers.