The US stock market saw a slight uptick on Tuesday as investors eagerly awaited key earnings reports from tech giant Microsoft and kept a close eye on the Federal Reserve’s rate-setting policy meeting.
The S&P 500 rose 0.2%, the Nasdaq Composite hovered near the flatline, and the Dow Jones Industrial Average rose 0.5%. This comes after a lackluster session for the major gauges, with investors hoping for positive news from some of the biggest players in the market.
The week ahead is shaping up to be pivotal, with the Fed’s decision, the July jobs report, and earnings from four of the “Magnificent Seven” megacaps all on the agenda. Investors are eager to see if the recent stock pullback is over and are weighing high expectations for interest-rate cuts against concerns about the performance of Big Tech companies.
Microsoft’s quarterly report, due after trading ends, will set the stage for earnings reports from Apple, Amazon, and Meta in the coming days. Wall Street is particularly interested in seeing if massive AI investments are starting to pay off, especially after a volatile July for stocks.
Pharmaceutical companies Merck and Pfizer, as well as consumer products giant Procter & Gamble, posted quarterly results before the market open. Coffee-shop chain Starbucks and chip giant AMD are set to report after the market close.
One notable theme this earnings season is investors’ willingness to support companies that post weak results but show signs of a turnaround in the near future.
Meanwhile, the Federal Reserve began its July policy meeting on Tuesday. While no change in borrowing costs is expected on Wednesday, policymakers are likely to lay the groundwork for a rate cut in September. The market debate now centers on the timing and number of cuts expected this year.
Overall, investors are keeping a close watch on the markets as they navigate through a week filled with important economic data and earnings reports that could shape the direction of the stock market in the coming months.
