US investors to watch Mag-7 earnings, Fed policy this week as Iran strikes halt
This digest was compiled by AI from multiple sources — links to the originals are below.
US equity investors will scrutinize quarterly results from Microsoft, Meta, Apple, and Amazon this week, alongside the Federal Reserve's policy decision and key inflation data. The focus on corporate earnings and monetary policy comes as US and Iranian military strikes have paused after nearly two weeks of attacks, creating room for diplomacy.
Mag-7 Earnings
Investors await reports from Microsoft, Meta, Apple, and Amazon for evidence validating AI-related capital expenditure that is expected to exceed $800 billion this year. Last week, Alphabet and Tesla shares fell after both reported negative free cash flows. Over a quarter of S&P 500 constituents have posted Q2 results so far, with earnings up almost 69% year-over-year, well above the 23% consensus as of June 30. A DA Davidson note on Sunday said most of the outperformance is skewed by a handful of semiconductor stocks and Alphabet’s investment gains from SpaceX and Anthropic.
Fed and Inflation Data
The Federal Reserve’s July policy meeting and Chair Kevin Warsh’s press conference will be closely monitored for signals on the rate path. Key macroeconomic releases this week include the personal consumption expenditures price index, the advance estimate of Q2 GDP, durable goods orders, and the University of Michigan’s consumer sentiment and inflation expectations surveys. Investors will parse the data for clues on whether inflation is cooling enough to support rate cuts.
Middle East Pause
US and Iranian strikes have stopped after nightly American bombing and Iranian attacks on US allies persisted for nearly two weeks, CNN reported Monday. Mike Waltz, the US ambassador to the United Nations, said Sunday that President Donald Trump is giving diplomatic talks “some space” to develop, after efforts intensified over recent days. The halt in hostilities has shifted market attention back to corporate fundamentals and central bank policy.
What's Next
The Federal Open Market Committee is set to announce its decision on Wednesday, followed by Chair Warsh’s press conference, with markets split on the timing of future cuts. It remains unclear whether big-tech earnings will justify the massive AI spending trend amid signs of diverging results among the Magnificent Seven.
4 sources
US investors to watch Mag-7 earnings, Fed policy this week as Iran strikes halt
