What will drive the markets this week?
Wall Street’s major indexes closed higher on Friday as investors returned to tech megacaps that had caused broad sell-offs earlier in the week. Additionally, inflation data fueled optimism that the Federal Reserve might soon start cutting interest rates. For the week, the Dow gained 0.75%, while the S&P 500 declined 0.82% and the Nasdaq dropped 2.08%.
In Europe, shares closed higher on Friday, bolstered by earnings-driven gains across several sectors, including luxury, while global markets remained stable following data indicating an improving U.S. inflation outlook. The pan-European STOXX 600 index rose 0.8%, recording a marginal weekly advance of about 0.5%.
Asia-Pacific markets mostly rebounded on Friday following Thursday’s sell-off, which saw some indexes in the region hit their lowest levels in months. Japan’s Nikkei 225 was the notable outlier, extending losses for an eighth straight day, down 0.53% to 37,667.41. The Topix fell 0.38% to 2,699.54, its lowest since April 26. Chipmaker Renesas Electronics fell for the second straight day, plunging over 5% on Friday, bringing its share price to its lowest level since April.
The upcoming week promises significant activity in the markets, with key monetary policy announcements and earnings reports from more than half of the Magnificent Seven companies.
The Federal Reserve is set to reveal its latest interest rate decision on Wednesday, followed by remarks from Chair Jerome Powell.
Several major companies are scheduled to release their earnings this week, including top Big Tech firms like Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta Platforms (META), along with several chip manufacturers. Additionally, investors will receive quarterly updates from McDonald’s (MCD), ExxonMobil (XOM), and Merck (MRK).
Events expected to move the markets this week
Monday, July 29
- Dallas Federal Reserve manufacturing index (July)
- McDonald’s, ON Semiconductor (ON), Equity Residential (EQR), and SBA Communications (SBAC) report earnings
Tuesday, July 30
- S&P CoreLogic Case-Shiller home price index (May)
- Consumer Confidence (June)
- Job openings (June)
- Federal Open Market Committee (FOMC) meeting begins
- Microsoft, Procter & Gamble (PG), Merck,Advanced Micro Devices (AMD), Pfizer (PFE), BP (BP) and Starbucks (SBUX) report earnings
Wednesday, July 31
- ADP employment report (July)
- Pending home sales (June)
- FOMC interest rate decision
- Federal Reserve Chair Jerome Powell’s press conference
- Meta Platforms, Mastercard (MA), Qualcomm (QCOM), T-Mobile (TMUS), Arm Holdings (ARM), Lam Research (LRCX), and Boeing (BA) report earnings
Thursday, Aug. 1
- Jobless claims (Week ending July 27)
- S&P manufacturing PMI (July)
- ISM manufacturing (July)
- Construction spending (June)
- Apple, Amazon, Toyota Motor (TM), Shell (SHEL), Intel (INTC), Booking Holdings (BKNG), ConocoPhillips (COP), and Anheuser-Busch InBev (BUD) report earnings
Friday, Aug. 2
- U.S. employment report (July)
- Factory orders (June)
- ExxonMobil40 and Chevron (CVX) report earnings