This scenario can indeed be categorised as a "better than fear" situation. Here's why:

1. Market Expectations vs Results: Companies like Microsoft and Meta surpassing earnings and revenue expectations often ease broader market concerns, particularly in a volatile environment where issues such as tariffs or economic slowdowns are a worry. Strong performances by major players reassure investors that these firms can effectively navigate macroeconomic challenges.

2. Sector Leadership: Microsoft’s robust cloud and enterprise performance, along with Meta’s resurgence in advertising, signal resilience in key growth sectors. This sets a positive tone across industries, boosting confidence in technology and related fields.

Regarding Apple and Amazon:

Apple: Much will depend on iPhone sales, wearables, and subscription services. The market will closely watch whether demand remains strong despite inflationary pressures. Any commentary on supply chain improvements or challenges will also be critical.

Amazon: Investors will focus on trends in e-commerce, AWS growth, and profitability. A slowdown in consumer spending or AWS growth could dampen sentiment, but strong guidance or market share gains may counterbalance concerns.

If Apple and Amazon also deliver strong results, it could bolster market sentiment and potentially trigger a broader rally. However, any disappointment could lead to renewed volatility, as their significance in indices makes them highly influential.