TradingKey - U.S. stocks closed at record highs last week as investors boosted bets on further Federal Reserve rate cuts following a batch of tame inflation data.
This week, the spotlight turns to Big Tech's earnings blitz, with Microsoft, Google (GOOGL), Meta, Apple (AAPL), and Amazon (AMZN) all set to report results. Nvidia (NVDA), the artificial intelligence chip leader, will host its GTC conference, where CEO Jensen Huang is scheduled to deliver a live keynote address at the Walter E. Washington Convention Center.
The Federal Open Market Committee (FOMC) will announce its latest interest rate decision, followed by a monetary policy press conference with Chair Jerome Powell. Markets widely expect a 25-basis-point rate cut.
Preview of major events
U.S. Tech Earnings Blitz: What Surprises Will Microsoft, Google, and Apple Deliver?
Microsoft, Google, Meta, Apple, and Amazon—the core members of the U.S. "Magnificent Seven" tech giants—are set to release earnings in rapid succession, while AI chip leader Nvidia will host its GTC conference, with CEO Jensen Huang’s keynote address highly anticipated.
John Flood, a trader at Goldman Sachs, said investor sentiment and positioning around the large-cap tech earnings are “the most favorable I’ve seen in quite some time.” He expects that if the results are free of major missteps, markets will be primed for another leg up in index levels, led by what he calls “super-cycle tech capital.”
Fed Rate Cut: 25-Basis-Point Move All But Certain
The Federal Reserve is set to announce its policy decision on Thursday (October 30) at 2 a.m. New York time, followed by a press conference with Chair Jerome Powell half an hour later. The current federal funds rate stands at 4.00–4.25%. After last Friday’s weaker-than-expected September inflation print, markets are increasingly confident the Fed will deliver a 25-basis-point cut this week, lowering the target range to 3.75%–4.00%, with another rate reduction expected in December.
Market participants widely anticipate that Fed officials will also discuss the outlook for the central bank’s balance sheet during their meeting in Washington. While a rate cut to 3.75%–4.00% is seen as highly likely, Wall Street remains less certain about when policymakers will signal a halt to quantitative tightening—the Fed’s other key tool for influencing financial conditions.
NVIDIA GTC: Jensen Huang Takes the Stage
NVIDIA CEO Jensen Huang will deliver a live keynote address at the GTC conference in Washington, D.C., starting at 12:00 p.m. local time on October 28 (00:00 Beijing time on October 29) at the Walter E. Washington Convention Center.
Lyon Securities said in a research report that while AI industry revenues are not yet sufficient to cover the massive investments being made, it expects the sector’s revenue to grow 160% year-over-year in 2026, signaling the industry is moving in the right direction. The firm maintains a positive outlook on the sector and recommends NVIDIA, assigning it a “Strong Buy” rating with high conviction and a price target of $270.
Selected Economic Data
Monday: U.S. September Durable Goods Orders Month-over-Month
Tuesday: U.S. October Conference Board Consumer Confidence Index
Thursday: Federal Reserve FOMC Announces Interest Rate Decision; ECB Depository Facility Rate Announcement (as of October 30)
Friday: U.S. September Core PCE Price Index Year-over-Year
This week's featured events
Monday: U.S. President Donald Trump delivers speech
Thursday: Federal Reserve Chair Jerome Powell holds monetary policy press conference; European Central Bank President Christine Lagarde holds monetary policy press conference
Friday: Dallas Fed President Lorie Logan, 2026 FOMC voter, delivers speech
Corporate Earnings
Monday: NXP Semiconductors (NXPI)
Tuesday: PayPal (PYPL), Novartis (NVS)
Wednesday: Alphabet (GOOGL), Boeing (BA), Meta (META), Microsoft (MSFT)
Thursday: Amazon (AMZN), Apple (AAPL)
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