What To Expect In Markets This Week: Fed Rate Cuts, Magnificent Seven AI Earnings Blitz Market Lens podcast

What to Expect in Markets This Week: Fed Rate Cuts, Magnificent Seven AI Earnings Blitz

15d ago 1:39

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This episode outlines the crucial events driving investor focus this week: the Federal Reserve interest-rate decision and a substantial slate of quarterly reports from major tech companies, including most of the Magnificent Seven.

The Federal Reserve is widely expected to conclude its meeting on Wednesday by reducing interest rates for the second time this year. Market watchers anticipate the central bank will cut its federal funds rate by a quarter percentage point, bringing the range down to 3.75% to 4%. While lower borrowing costs are aimed at spurring business activity amid fears of labor market weakness, this move comes while inflation remains above the Fed's target level. Investors will look quickly to remarks from Fed Chair Jerome Powell for clues on the central bank’s next steps.

Meanwhile, a busy run of earnings reports is due from tech giants like Apple, Microsoft, Meta, Amazon, and Google parent Alphabet. These corporate updates are expected to provide significant context on the state of artificial intelligence (AI) spending. Highlights include the report from Microsoft—the world’s second-most valuable company—which recently unveiled a $40 billion AI data center deal. Apple reports after its share price hit a record high following strong sales of the new iPhone 17 model. Meta's report is expected to provide details on its recent move into AI-powered glasses.

Finally, the episode examines the impact of the ongoing government shutdown, which is entering its second month. The shutdown has caused a data drought, delaying key metrics such as employment and price levels, which are critical for economic forecasting. This combination of the expected rate cut and high-stakes earnings releases could contribute to a recent stretch of volatile market movements.

Disclaimer: This podcast by kavout.com is for informational and educational purposes only and does not constitute investment advice. All opinions are those of the hosts and guests. Please consult a qualified financial advisor before making any investment decisions.

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