Wall Street is heading for a pivotal week as Big Tech earnings, the Federal Reserve’s rate decision and key inflation data test a market hovering near record highs.
The busiest stretch begins on Wednesday, when Microsoft and Meta Platforms report earnings before the focus quickly shifts to the Fed’s interest rate decision later in the day
Apple and Amazon then take center stage on Thursday, giving investors another read on whether the AI boom is still worth its hefty price tag. After Tesla and Alphabet were punished last week for rising AI-related capital spending, investors are expected to scrutinize spending plans just as closely at Microsoft, Meta and Amazon. While demand for AI infrastructure remains strong, markets are becoming less forgiving of companies pouring billions into expansion.
Outside Big Tech, earnings season remains in full swing with reports due from Visa, Boeing, Coca-Cola, Qualcomm, Starbucks, Shell, Coinbase, Chevron, ExxonMobil and AbbVie. The Fed, however, may be the week’s biggest catalyst. Most economists expect policymakers to leave interest rates unchanged in a range of 3.5% to 3.75%, but investors will be paying close attention to Fed Chair Kevin Warsh’s comments on inflation, economic growth and whether higher oil prices have altered the central bank’s outlook.