Tech heavyweights like Apple, Tesla and Microsoft will be taking the stage for earnings season this week, while the Fed meets for the first time since Trump moved into the White House.
Buckle up for a blockbuster week in the markets.
Date with Jay
The Fed has its first meeting of the year this week, and while there are no dramatic moves expected — rates are likely to stay at 4.25% to 4.5% — all eyes will be on Jerome Powell’s press conference.
He could face questions about how Trump’s policies may impact inflation or give clues on the path of interest rates for 2025. That’ll be of particular interest after Trump said he’ll “demand that interest rates drop immediately” in a video speech at Davos.
Bank of America believes the cutting cycle is over with the labor market resilient, and inflation stuck above the 2% target. “But the Fed isn’t nearly ready to make that commitment yet,” strategists led by Mark Cabana wrote in a note.
Read more: Plot twist: What if the Fed raises interest rates in 2025?
Big week, Wall Street
It’s here: the biggest week of earnings season and it’s all about big tech. With over 40% of the S&P 500’s market cap reporting, the stakes are high.
Heavyweights like Microsoft, Meta, Apple, Tesla, IBM and Intel are set to take the stage, along with energy giants Exxon and Chevron, whose take on buybacks will be on investors’ radars as Trump’s “drill, baby, drill” mantra makes a comeback.
Meanwhile, over in the Gulf, top banks including the UAE’s First Abu Dhabi Bank and Emirates NBD, as well as Saudi Arabia’s Al Rajhi, are also gearing up for their big earnings reveals.
Read more: Big Tech’s S&P 500 stranglehold is becoming a problem
Budget day in New Delhi
It’s no secret that India’s economy needs a pick me up, with the pace of GDP growth limping along at the slowest it’s been since the pandemic.
Finance Minister Nirmala Sitharaman will get a chance to rev up the BPM when she presents the government budget on 1 February. These used to be big showpiece events for authorities to shift gears for the economy – announcing more spending on key industries, or opening up sectors for investment.
Nowadays they tend to be underwhelming affairs. But with the economy looking so dicey, now might just be the time to shake things up again.
Read more: India’s growth engine is sputtering. How do you deal with it?
MONIIFY will be watching all the above, so you don’t have to — stay tuned.
Edited by Thyagu Adinarayan and Tim Hume. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com