While a bevy of companies are slated to report earnings next week, investors will closely watch results from Alphabet, Microsoft and Meta Platforms. The latest Personal Consumption Expenditures price index data for June is due just two days after the central bank delivers its interest rate decision for this month.īig Tech earnings. Fed Governor Christopher Waller earlier this month reiterated the widely-held view among Fed officials that two more rate hikes are needed this year and suggested that the central bank could want to get rate hikes over with as soon as possible. “If they continue to put their foot on the brake to try to slow the economy down, and they get language around that week, that would be problematic” for markets, said David Smith, chief investment officer at Rockland Trust.Īlready, Powell and other officials have hinted that another rate hike in September could be on the table. With expectations for July’s decision mostly in consensus, investors will watch for any commentary Fed Chair Jerome Powell has to deliver on where the central bank will take rates from there. Traders expect a nearly 100% chance of such an outcome as of Friday afternoon, according to the CME FedWatch Tool.
The central bank is largely expected to raise interest rates by a quarter point on Wednesday after pausing in June. The Fed begins its two-day July meeting on Tuesday. A bevy of possibly market-moving events are in store for investors this week.
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