Wall Street Week Ahead: Fed decision, big tech earnings and Middle East conflict in focus

Wall Street is preparing for a crucial week as investors await the US Federal Reserve's latest interest rate decision, a fresh batch of economic data and quarterly earnings from four of the Magnificent Seven technology companies.

The Federal Reserve is widely expected to keep its benchmark interest rate unchanged in the 3.50%-3.75% range when it announces its policy decision. However, market participants will closely examine the central bank's accompanying statement and Chair Kevin Warsh’s comments for signals on whether policymakers could resume rate hikes at their September meeting, particularly after the recent spike in global energy prices.

The policy meeting follows a series of softer-than-expected US economic reports, including consumer inflation, producer prices and employment data.

Investors will also monitor key economic releases in the coming days, including second-quarter US gross domestic product (GDP) data and June Personal Consumption Expenditures (PCE) inflation figures, the Fed's preferred gauge of price pressures. These reports are expected to play a key role in shaping expectations for the central bank's future policy path.

On the corporate front, earnings season gathers momentum with several heavyweight companies scheduled to report quarterly results. Technology giants Microsoft, Meta Platforms, Apple and Amazon are among the most closely watched, while investors will also track financial and industrial bellwethers including Visa, Boeing and Qualcomm for insights into consumer spending, business investment and demand for artificial intelligence-related technologies.

Geopolitical developments will remain another major focus for financial markets. Escalating military exchanges between the United States and Iran in recent days have heightened concerns over potential disruptions to global energy supplies, pushing oil prices sharply higher and lifting bond yields as investors worry that rising fuel costs could reignite inflationary pressures.

July 27 (Monday): A report on durable goods for June will be issued.

July 28 (Tuesday): Separate reports on advance economic indicators report for June, wholesale inventories for June, and Conference Board’s consumer confidence for July will be released.

July 29 (Wednesday): US Federal Reserve to announce its interest rate decision.

July 30 (Thursday): Separate reports on advance estimate GDP for second quarter, weekly jobless claims for the week ended July, personal income for June, consumer spending for June, and PCE Price Index for June will be released.

July 31 (Friday): A report on Employment Cost Index for second quarter will be declared.

Following companies are scheduled to declare their quarter results in the week ahead – AstraZeneca, Visa, Coca-Cola, Boeing, Ford, Microsoft, Meta Platforms, P&G, Arm, Qualcomm, Apple, Amazon, Mastercard, AbbVie, and Chevron.

US stock markets finished with mixed results on Friday as easing oil prices helped calm investor nerves despite intensifying conflict in the Middle East that continued to threaten global energy supplies.

The benchmark S&P 500 edged up 3.68 points, or less than 0.1%, to close at 7,411.98. The Dow Jones Industrial Average gained 235.60 points, or 0.5%, ending the session at 51,947.25. In contrast, the technology-heavy Nasdaq Composite fell 161.87 points, or 0.6%, to settle at 24,975.82.

The small-cap Russell 2000 index also ended lower, shedding 10.16 points, or 0.3%, to close at 2,930.00.