🌟🌟🌟This week is jammed packed with lots of important events for the markets:
1. Big Tech Earnings: $Microsoft(MSFT.US)reports on Tuesday, $Meta Platforms(META.US)on Wednesday, $Apple(AAPL.US)and $Amazon(AMZN.US)on Thursday. $SK Hynix(SKHY.US)drops its results on Wednesday July 29.
What to watch: Investors are no longer focusing on generic AI hype. They are looking at hard data. I would be watching capital expenditure numbers to see whether Big Tech is successfully monetising their AI investments. A failure to prove high margins will spark an aggressive tech rotation.
2. The FOMC meeting on Wednesday followed by new Fed Chair Kevin Warsh's press conference.
What to watch: While Fed is widely expected to maintain a steady pace, pay close attention to the forward guidance. If Fed signals that interest rate will stay higher for longer due to recent trade tariffs, bond ETFs like $iShares barclays 20+ Yr Treasury Bd(TLT.US)and tech indices like Nasdaq 100 will face immediate downward pressure.
3. The US Q2 GDP Report Card on Thursday.
Consensus points to a stable print between 1.5% to 2.4%. If underlying consumer and business spending remains high, the market will jump.
4. Geopolitical & Energy Pivot
What to watch: Lower oil prices take the inflationary pressure off the consumer. If Iran war escalates, oil will surge past USD 100 a barrel.
Let's hope the market will have lots of good news. If not, then it is a great time for bargain hunting.
