A highly anticipated Fed meeting and the start of Magnificent 7 earnings highlight this week’s calendar. The Federal Reserve isn’t expected to move on interest rates at this week’s meeting. Still, market watchers will parse comments from Chair Jerome Powell amid pressure from the White House to lower rates. Microsoft, Meta Platforms, Tesla, and Apple are scheduled to report earnings this week, giving investors a look at the artificial intelligence trade and the state of play at some of the world’s biggest companies. Investors will also be following reports from Caterpillar, Boeing, General Motors, Visa, Mastercard, Exxon, and Chevron.
Fed to Issue First Interest Rate Decision of 2026
We won’t know until it happens: Will the Federal Reserve start the year with another cut to interest rates? Investors will find out on Wednesday when the Federal Open Market Committee issues its latest decision on the influential federal-funds rate. The FOMC has lowered rates at three consecutive meetings, but some officials have indicated that they wanted to see more economic data on inflation and the labor market before following up with additional cuts. Market participants have priced in a likelihood that the Fed will keep interest rates steady at the meeting after inflation data last week showed that prices remained elevated in November.Market watchers will get a handful of additional economic data this week, including a delayed report on December wholesale inflation and an update on the U.S. trade balance.
Mag 7 Stalwarts, Telecom and Industrial Firms Highlight Earnings Calendar
Wednesday is also when several Magnificent 7 companies are scheduled to report, with investors watching for updates from Microsoft, Meta Platforms, and Tesla. On Thursday, Mag 7 member Apple is due to report. Other noteworthy tech, auto, manufacturing, and financial firms are also slated to report financial updates. Microsoft will report amid a decline in its share price to start the year. For Tesla, deliveries have slowed, prompting investors to look at new growth opportunities for the tech giant. The report from Facebook-parent Meta will likely provide more insight into the firm’s AI plans as it shifts away from its “metaverse” projects. AI will also likely be an important topic for Apple as its report on Thursday follows the iPhone maker’s recently announced partnership with fellow Mag 7 member Alphabet.
Other tech firms are also likely to capture attention this week, including chipmaker Texas Instruments, chip equipment maker ASML, and tech stalwart IBM. Telecom firms AT&T and Verizon are also in the spotlight this week, while earnings from Caterpillar, Boeing, General Motors, Lockheed Martin, and steel producer Nucor could indicate the strength of the U.S. manufacturing sector.
What analysts are saying about U.S stocks
Morgan Stanley: “Earnings season is likely more of a stock-specific catalyst than an index-level driver.” “In the U.S., look for a strong EPS beat rate alongside elevated performance dispersion this earnings season. Meanwhile, small caps snapped their historic outperformance streak, but resilient fundamentals remain intact.”
Evercore ISI: “Despite (or because of) the fact that the Tech/AI centric sectors have been driven almost entirely by EPS growth in this Bull Market … … Info Tech is trading at its lowest NTM valuation premium to the S&P 500 in the post-Pandemic environment. Drilling down even further, Mag7 P/E is in-line with its post-Pandemic average, while the “other 493” stocks in the S&P 500 trade near their all-time high valuations.”
Goldman Sachs: “To capitalize on the broadening tailwind from an economic acceleration in early 2026, we continue to recommend select consumer stocks, companies with exposure to nonresidential construction, and small-caps as opportunities. The equal-weight S&P 500 also benefits from this dynamic, but it has less economic sensitivity than our recommended strategies. Among SMID-caps, following the strong returns of the Russell 2000, valuations appear more attractive for the S&P MidCap 400 and SmallCap 600.”