Fed’s Next Move & Tech Titans’ Earnings: Your Week in Markets

All eyes turn to the central bank and corporate boardrooms this week—the two forces that really move markets these days.

The Fed's Balancing Act

Jerome Powell steps back into the spotlight. The official interest rate decision lands first, but the real action starts when the Chair opens his mouth. Every syllable gets parsed for hints about the future—another hike, a long pause, or the first whisper of a cut. Markets don't just react to policy; they react to Powell's tone.

Tech's Reality Check

Meanwhile, the earnings confessional opens for Oracle and Broadcom. These aren't just tech reports; they're health checks on enterprise software and the semiconductor backbone of everything. Strong numbers could signal resilient corporate spending. A miss? That tells a different story about demand. It's a direct feed into the 'soft landing' or 'hard reality' debate.

So, buckle up. Between central bank speak and Silicon Valley's bottom line, we're in for a volatile ride. Just remember, the 'data-dependent' Fed is watching the same earnings reports you are—talk about a feedback loop.

Investors Watching for Fed Interest Rate Cut

The Federal Open Market Committee will hold its final meeting of the year, and many market watchers expect the central bank to cut interest rates Wednesday for a third straight time. Investors are expecting rates to drop to the 3.5% to 3.75% level, even as the debate continues over whether the central bank should MOVE borrowing costs lower while inflation remains above the Fed’s target.

Fed officials will be making their decision without a full set of economic data to review, as economic reports are still delayed after the government shutdown. Fed officials won’t have the latest jobs report due to the data delays, but worries about the labor market are expected to push the central bank to cut interest rates again.

Fed Chair Jerome Powell will hold a post-meeting press conference, where he is expected to lay out the central bank’s views on the economy, job market, and inflation. His comments could provide guidance on how the Fed will treat interest rates at its next meeting in late January.

Tech, Retail Earnings Highlight Corporate Calendar

A handful of corporate earnings reports are likely to draw attention from investors as the spotlight remains on artificial intelligence.

Oracle reports on Wednesday. Its stock price plunged in November over concerns that the software firm was taking on too much debt to fund its AI infrastructure buildout. Also reporting is AI chipmaker Broadcom, whose share price has risen on Optimism over its relationship with Google-parent Alphabet, a major purchaser of its chips. Graphics software maker Adobe’s Wednesday report will provide more insight into its AI sales despite a drop in the company’s stock price.

Several noteworthy retailers are also on the schedule. Costco’s report on Thursday may shed light on how tariffs are affecting the retailer, which recently announced it was suing the TRUMP administration over its trade policies. AutoZone’s report will highlight the company’s profit levels, which missed analyst expectations in the prior quarter as it raised spending to build out more stores. 

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This Week’s Calendar

• Key Earnings: Toll Brothers (TOL), Phreesia (PHR)

• Job openings (October)
• More Data to Watch: NFIB small business optimism (November)
• Key Earnings: AutoZone (AZO), Toll Brothers (TOL), Ferguson Enterprises (FERG), Casey’s General Stores (CASY), AeroVironment (AVAV), GameStop (GME), SailPoint (SAIL), Core & Main (CNM), Campbell’s (CPB)

• Federal Open Market Committee interest rate decision
• Fed Chair Jerome Powell press conference
• More Data to Watch: Employment cost index (Q3), monthly U.S. federal budget (November)
• Key Earnings: Oracle (ORCL), Adobe (ADBE), Synopsys (SNPS), Chewy (CHWY), Nordson (NDSN)

• U.S. trade deficit (September)
• More Data to Watch: Initial jobless claims (Week ending Dec. 6), Wholesale inventories (September)
• Key Earnings: Broadcom (AVGO), Costco (COST), Ciena (CIEN), Lululemon (LULU), Netskope (NTSK)

• Federal Reserve Official Speaking: Chicago Fed President Austan Goolsbee
• Key Earnings: Johnson Outdoors (JOUT), Value Line (VALU)

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