Wall Street is heading into a crucial stretch next week as investors are gearing up for a packed schedule: big-name tech earnings, key economic data, and major central bank decisions are all on deck.
The S&P 500 and Nasdaq just notched fresh record highs, fuelled by excitement around tech and AI breakthroughs.
But there’s a cautious mood underneath, with rising market volatility and fresh US-EU trade tensions keeping nerves in check.
All eyes this week will be on earnings from heavyweights like Alphabet and Tesla, as well as economic updates and the ECB’s next move, any of which could help set the tone for where the market heads next.
5 factors that could shape Wall Street week ahead
1. This week kicks off earnings season for the “Magnificent Seven” megacap tech names, with Alphabet and Tesla reporting on Wednesday.
Expectations are high as these two, along with the rest of the group, are projected to drive nearly half of the S&P 500’s estimated 5.6% earnings growth this quarter.
If either Alphabet or Tesla beats the street, it could give the broader market another push higher, especially with investor sentiment already leaning risk-on thanks to the ongoing tech rally.
2. The S&P 500 and Nasdaq closed at fresh record highs last week, riding the ongoing wave of excitement around tech and AI. But under the surface, there are signs of growing caution.
The VIX, Wall Street’s fear gauge, has started to creep up from recent lows, hinting that traders are bracing for more turbulence as we head into what’s typically a bumpier stretch of the year.
3. It’s not just the tech giants making headlines this week. Earnings are also due from a range of major players across sectors, like Coca-Cola, Texas Instruments, IBM, AT&T, and Honeywell, which are all set to report.
There’s also renewed buzz around bank mergers, after a noticeable pickup in deal activity last quarter.
On the calls, investors will be paying close attention to what executives are saying about tariffs, the broader macro environment, and how AI is factoring into their long-term strategies.
4. The week starts off with June’s leading indicators, setting the tone ahead of a busy slate of data, including existing and new home sales, PMI readings, and durable goods orders.
On the global front, all eyes will be on the European Central Bank’s rate decision on Thursday, which could move both currency and equity markets depending on the tone and any policy surprises.
5. Trade tensions between the US and EU are still hanging over the market, with talk of potential tariff hikes ranging from 15% to 30% adding to the uncertainty.
The deadline for a deal is July 31, and until then, it’s a wait-and-watch game. Any sign of escalation could rattle investor sentiment pretty quickly.
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