Google and Tesla kick off M7 earnings season Powell appears under heavy pressure ECB releases latest interest rate decision【The week ahead】

TradingKey - The US stock market showed an overall trend of oscillating upward last week. The Nasdaq Composite Index and the S&P 500 Index hit record highs twice within 5 trading days, showing the recent activity of the US stock market. This week, the US stock market entered the peak of the earnings season. It is expected that more than 100 S&P 500 components will release earnings reports. Google (Alphabet) and Tesla will become the focus of attention. Coca-Cola and General Motors will also bring the latest stories of the US business community on the impact of tariffs. Powell, who has been repeatedly pressured by the White House recently, will also deliver a welcome speech at a conference. This Thursday, the European Central Bank held a monetary policy meeting. After eight interest rate cuts, the eurozone policy interest rate has now stabilized at 2%.

Preview of major events

Google (Alphabet), Tesla (TSLA) kick off M7 earnings season

he next two weeks will be the core of the earnings season for US tech giants. After the US stock market closes on July 23, Google's parent company Alphabet (GOOG) will release its second quarter 2025 financial report. Tesla will release its second quarter financial report for fiscal year 25 on July 23 (before the US stock market).

The market generally expects Google's revenue to be US$93.9 billion, an increase of 11% year-on-year. Earnings per share (EPS) is US$2.17, an increase of 15% year-on-year. The market generally expects revenue and earnings to face challenges, but the company has shown growth potential in the emerging business of energy storage, and analysts' views are generally cautious. According to market expectations, Tesla's second-quarter revenue is expected to be US$22.83 billion, a year-on-year decrease of 10.46%; adjusted net profit is expected to be US$1.533 billion, a year-on-year decrease of 15.38%; earnings per share are expected to be US$0.43, a year-on-year decrease of 17.46%.

The ECB will announce its latest interest rate decision on Thursday

The European Central Bank will announce its latest interest rate decision on Thursday, and the market generally expects that the pace of rate cuts will be temporarily paused. After eight rate cuts, the eurozone policy rate has now stabilized at 2%. The minutes of the June ECB meeting pointed out that the profit margins of eurozone companies have been squeezed recently.

It is reported that the ECB will discuss a more negative situation this week than expected in June after Trump's latest trade tax threats. The ECB is still expected to keep interest rates unchanged at its meeting on July 24. Discussions on rate cuts have been postponed to September.

US President Trump will deliver a speech on the artificial intelligence industry

US President Trump plans to deliver a major speech next week to outline his vision for the development of artificial intelligence (AI) and propose strategies to ensure that the United States maintains global dominance in this field.

The action plan is a policy task initiated by Trump's executive order signed within days of taking office in January this year, and is now in the final stage of finalization. The plan was led by Sacks and White House technology adviser Michael Kratsios, and widely absorbed the opinions of the industry. The plan is expected to be released at the end of this month, and Trump will then sign a new executive order to promote its specific policies.

Fed Chairman Powell delivers welcome remarks at a regulatory conference

On the 22nd, Fed Chairman Powell will deliver a welcome speech at a regulatory meeting, which is also a rare "live speech during the silent period". The market has basically priced in that the Fed will not cut interest rates at the meeting at the end of this month, but Trump's dissatisfaction with Powell has intensified in recent days, and he has been putting pressure on the Fed to "cut interest rates now". 

Some analysts believe that the market's reaction may make the government realize that firing Powell is not a panacea for the economy and the market. But there are also views that the market's performance before Trump's denial was not so bad, which may encourage him to take another step in the future, and the market's acceptable window has been pushed wider-for investors, this is the beginning of a worse situation.

Selected Economic Data

Wednesday:U.S. June existing home sales (10,000 households)

Thursday:Eurozone deposit facility rate of the European Central Bank until July 24

Friday:U.S. June durable goods orders monthly rate

This week's featured events

Tuesday:Federal Reserve Chairman Powell delivered a welcome speech at a regulatory conference.

Wednesday:U.S. President Trump spoke at an event called "Winning the Artificial Intelligence Race."

Thursday:European Central Bank President Lagarde held a monetary policy press conference.

Company Financial Report

Monday: Coca-Cola (KO.N), General Motors (GM.N), Texas Instruments (TXN.O)

Tuesday: AT&T (T.N), Alphabet (GOOGL.O), Tesla (TSLA.O), IBM (IBM.N)

Wednesday: Intel (INTC.O)