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US Equity Investors to Focus on Mag-7 Earnings, Fed Policy Statements This Week as Halted Iran Strikes Make Way for Diplomacy
US equity investors will focus on big-tech earnings, inflation, and the Federal Reserve policy meeting this week amid a pause in Middle East hostilities.* Four Magnificent-7 giants will be key among quarterly results due this week. Results from Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon.com (AMZN) will be closely monitored as investors look for more evidence justifying AI-related capital expenditure reportedly exceeding $800 billion this year. Alphabet (GOOG, GOOGL) and Tesla's (TSLA) shares slumped last week after the duo announced negative free cash flows.* Over a quarter of S&P 500 constituents have reported Q2 financial results through Friday, according to a Sunday note from DA Davidson. Earnings have increased by almost 69% year-over-year, ahead of the consensus of more than 23% as of June 30. "Most of this outperformance is being skewed by a handful of semiconductor stocks that have reported large Y/Y figures, as well as GOOGL, which reported huge growth driven primarily from investment gains in SpaceX and Anthropic," per the note.* In addition to the Fed's July policy meeting and Chair Kevin Warsh's press conference, investors will focus on macroeconomic data due this week, including the personal consumption expenditures price index, or PCE, the advance read on Q2 gross domestic product, durable goods orders, and the University of Michigan's consumer sentiment and inflation expectation prints.* US and Iran strikes have paused after nearly two weeks of nightly bombing by the American military and Iranian attacks on US allies, CNN reported Monday. Mike Waltz, the US ambassador to the United Nations, said in interviews Sunday that President Donald Trump is giving talks "some space" to develop after diplomatic efforts ramped up over the past few days.
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