It’s shaping up to be one of the busiest—and potentially most market-moving—weeks of the year on Wall Street. Investors are gearing up for a double dose of excitement: a closely watched Federal Reserve meeting and a wave of earnings from the world’s biggest tech companies.
The Fed is widely expected to cut interest rates by another 25 basis points on Wednesday, marking its second straight reduction since restarting policy easing in September. That view was reinforced by a softer-than-expected inflation report for September, which gave policymakers more room to maneuver.
Markets are already pricing in about a 95% chance of the cut, which would bring the target range down to around 3.75% to 4%. “If the Fed cuts as the market expects, I anticipate liquidity will return quickly to growth assets,” said Nigel Green, CEO of deVere Group. “These companies are first in line to benefit.”
And those companies, otherwise known as the “Magnificent Seven,” will dominate the week. Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOG), and Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) report earnings on Wednesday, followed by Apple Inc (NASDAQ:AAPL, ETR:APC) and Amazon.com Inc (NASDAQ:AMZN) on Thursday. Together, they could determine whether this year’s rally has more room to run.
Green expects the results to impress. “Revenue momentum from AI, cloud computing and digital advertising appears to be building again,” he said, adding that the backdrop “now looks the best it’s been for these firms in several years.” Green predicts strong reports could drive stocks to new highs before year-end, with ripple effects spreading across the global tech supply chain and even to digital assets like Bitcoin, which has surged past $115,000.
But it’s not just about earnings. US President Donald Trump heads to Asia this week for meetings that could shape the global trade landscape. All eyes will be on his Thursday sit-down with Chinese President Xi Jinping, especially with new tariffs on Chinese goods still on the table.
“It’s a monster week ahead,” said Michael Brown, senior research strategist at Pepperstone. “Trade developments are likely to dominate, while the Fed’s policy decision and Big Tech earnings will set the tone for markets into November.”
Central banks elsewhere will also be in focus. The Bank of Canada is expected to trim rates on Wednesday, while both the Bank of Japan and European Central Bank are likely to stay put later in the week.
With roughly 40% of the S&P 500’s market value reporting earnings in the coming days, investors are bracing for a flurry of news that could shape the market narrative heading into the final stretch of the year.