Busy Week Ahead: Federal Reserve Decision and Big Tech Earnings in Focus

Markets brace for a pivotal week as the Federal Reserve's policy decision and earnings reports from tech giants take center stage. While no rate cut is anticipated at Wednesday's meeting, speculation mounts about potential September easing after Fed Governor Christopher Waller hinted at openness to earlier action. The S&P 500's five consecutive record closes reflect investor Optimism despite looming economic crosscurrents.

Second-quarter GDP projections suggest a robust 3% rebound from Q1's contraction, while July's jobs report could reveal cooling employment growth. Tech earnings will scrutinize AI investment strategies as Microsoft, Apple, Amazon and Meta report amidst soaring market valuations. With 164 S&P components releasing results this week, current earnings growth stands at 6.4% - a testament to corporate resilience amid tightening financial conditions.