Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Saturday, July 5
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Investing»Big Tech, the Fed, and the big investing week ahead
    Investing

    Big Tech, the Fed, and the big investing week ahead

    July 27, 20245 Mins Read


    The Focus This Week: Big Earnings, Bigger Picture

    The AI-driven Big Tech rally lately seems like it could be running out of gas. And that puts some added pressure on behemoths Microsoft, Meta, Apple, and Amazon as they release quarterly results this week. The profit figures for these firms could change the whole story for the market, after a stellar start to the year that’s been driven by them and just a few other of the sector’s giants. Investors – who are likely holding their breath for even more standout performances – should brace for volatility. A mere whiff of disappointment could trigger another sharp selloff this week, just as it did last week.

    And sure, those Magnificent Seven firms are likely to hog the spotlight, but it’s worth paying attention to the earnings reports from Procter & Gamble, Starbucks, and Mastercard too. Their figures are more than just numbers – they’re a financial pulse check on the whole country. And that checkup comes at a crucial moment, as smaller firms – typically the ones more sensitive to domestic economic wellbeing – are beginning to regain momentum lost to those AI-linked tech lords.

    Now, earnings snapshots are helpful, but they’re essentially a look in the rearview mirror at the most recent performance. For a peek through the windshield at what’s coming up, you might want to keep your eyes on the world’s central banks. This week, the Federal Reserve, the Bank of Japan, and the Bank of England are all set to announce interest rate decisions. And since borrowing costs drive pretty much everything, what they do (and what they say) matters.

    Of course, investors are eagerly an no ticipating rate cuts in the US and the UK, but there’s no guarantee they’ll see them now. Inflation has fallen closer to the central banks’ target, sure, but it’s still too high and volatile for policymakers to feel confident enough to slash rates just yet. See, they’re cautious about triggering another inflation spike that could hurt the economy – and their credibility. But it’s a delicate balance: unemployment has been rising recently, and central banks don’t want to be forced into steep rate cuts later if the economy is slowing faster than anticipated. So rate cuts are likely on the horizon, but whether they’ll happen as early as this week is still anyone’s guess.

    And that’s the story for almost every central bank out there – except Japan. See, Japan’s economy endured two decades of deflation and now is welcoming a little inflation action. That’s why it’s been the only major central bank to keep its key rates near zero. But consumer price rises have now been above target for more than two years, and the yen has fallen a bit too far too fast for the BoJ’s tastes, so don’t be surprised if these central bankers hike rates when they meet this week.

    On The Calendar

    • Monday: UK M4 money supply (June). Earnings: McDonald’s.
    • Tuesday: Japan unemployment rate (June), eurozone economic growth (Q2), US consumer confidence (July), US job openings and labor turnover survey (June), eurozone economic sentiment (July). Earnings: Microsoft, AMD, PayPal, Merck, Pfizer, Procter & Gamble, Mondelez, Starbucks.
    • Wednesday: China PMIs (July), Japan industrial production and retail sales (June), Bank of Japan interest rate announcement, Federal Reserve interest rate announcement, eurozone inflation (July). Earnings: Meta, Arm, Qualcomm, Mastercard, Boeing.
    • Thursday: Eurozone unemployment rate (June), Bank of England interest rate announcement. Earnings: Apple, Amazon, Coinbase, Intel.
    • Friday: US jobs report (July). Earnings: Chevron, ExxonMobil.

    What You Might’ve Missed Last Week

    US

    • Big Tech saw a big drop, as traders violently shifted from megacap AI plays to quieter corners of the market.
    • The US economy grew at a peppier-than-expected pace, as consumer spending perked up.

    Europe

    • Eurozone business activity notched little growth, as the bloc’s top economy unexpectedly slumped.

    Asia

    • China surprised markets with an interest rate cut, a week after the much-touted Third Plenum meeting left investors feeling let down.

    Why It Matters

    Big Tech has fueled the stock market’s rally through much of this year, but last week, it hit a major snag. Investors rushed to dump their Magnificent Seven stocks, worried that the firms’ earnings might never match the massive figures they’re spending on AI technology. They flocked instead to the all-but-forgotten small-cap corners of the market. And sure, there’s wisdom in buying small firms now – they’re likely to outperform as interest rates start to fall, for a start – but the sudden pivot had folks feeling anxious, just days ahead of quarterly updates from Microsoft, Meta, Apple, and Amazon.

    The world’s biggest economy picked up its own pace in the second quarter – growing at a surprisingly quick 2.8% annualized rate – double the rate of the previous quarter. And that spunkier stride was thanks mostly to the country’s tried-and-true growth engine: the American consumer. The news was good, suggesting the US might be inching closer to a soft-landing scenario, where inflation eases toward the central bank target without triggering a recession. It’s a delicate balance, though, with some inflation measures still stubbornly high and certain segments of the economy experiencing a more pronounced slowdown.

    Euro-area business activity expanded by the slightest of margins in July, weighed down by unexpected weakness in Germany. The surprisingly weak purchasing managers index comes as the European Central Bank considers whether to announce a second interest rate cut when it meets in September. Keeping interest rates high could help cool down the region’s stubbornly hot prices, but those higher borrowing costs might also stifle growth.

    The People’s Bank of China took markets by surprise on Monday, slicing a key interest rate to 1.7% from 1.8%. The move had Chinese banks lowering their benchmark lending rates in kind, making borrowing cheaper across the board – from mortgages to personal loans. There was some hope that those rate cuts might help perk up an economy that’s showing its weakest growth in over a year. But it’s a far cry from what investors had been hoping for: a massive stimulus spending announcement in the wake of the big Third Plenum economic meeting.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleIs Shopify the Next Amazon?
    Next Article Trump pledges to make US ‘the crypto capital of the planet’ during speech at world’s largest Bitcoin conference

    Related Posts

    Investing

    Graphique CAC 40 direct en temps réel

    July 2, 2025
    Investing

    Historique des données S&P 500 Futures

    July 1, 2025
    Investing

    Analyses et prévisions relatives aux crypto-monnaies

    June 29, 2025
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    Action Ganglong China Property Group Limited | Cours 6968 Bourse Hong Kong S.E.

    July 31, 2007
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Commodities

    Oil rises 3% on signs of more Europe and China demand, less US output

    May 6, 2025
    Property

    China’s Kaisa Group liquidation hearing adjourned by Hong Kong court

    August 12, 2024
    Bitcoin

    pourquoi l’arrivée de Donald Trump change tout pour le secteur des cryptos ?

    January 22, 2025
    What's Hot

    China slams Donald Trump as ‘two-faced’ as export growth slows

    March 6, 2025

    Gold at new lifetime highs: Is it safe to invest now?

    October 27, 2024

    Free workshops offered before May 15 property appraisal deadline

    May 2, 2025
    Most Popular

    What Are Commodities and Why Should You Own Them?

    October 25, 2024

    Bitcoin Price Set To Skyrocket To $750,000, Says Expert

    July 18, 2024

    Property sales slump 66% in April following stamp duty deadline: HMRC

    May 30, 2025
    Editor's Picks

    Bitcoin et cybersécurité : protéger vos transactions numériques

    April 7, 2025

    Realtor report: Foreign home buying falls 21% in US

    July 18, 2024

    Utilities may soon pay you to help support a greener grid

    March 5, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2025 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.