Fed Rate Decision Looms as Apple, Microsoft, Meta and Tesla Q4 Earnings Draw Attention: Week Ahead

TradingKey - Last week, U.S. stocks experienced volatility triggered by Donald Trump's remarks on imposing tariffs on Europe. The Dow fell 0.53% for the week, the S&P 500 slipped 0.35%, and the Nasdaq recorded a decline of less than 0.1%. This week, investor focus shifts back to the macroeconomy, monetary policy, and corporate earnings, with the Federal Reserve's interest rate decision taking center stage. In the U.S. stock market, giants including Apple (AAPL) , Microsoft (MSFT) , Meta (META) and Tesla (TSLA) and other tech giants are set to release their Q4 earnings reports, with the market focusing on whether companies have begun to benefit from their AI-related investments.

Major Event Preview

Tech Giants Including Apple, Microsoft, Meta, and Tesla to Report Earnings

Several major tech stocks will report next week; for U.S. stocks after the bell, watch Tesla, Apple, Microsoft, and Meta, ASML (ASML) as well as other key corporate earnings. For Tesla, the focus has shifted from financial metrics to progress in FSD, humanoid robots, and Robotaxi technology. Microsoft and Meta will primarily address the question of 'AI spending versus monetization.' Meanwhile, Apple faces pressure from rising costs and urgently needs to demonstrate its pricing power and supply chain control. Additionally, results from ASML and IBM will serve as bellwethers for upstream semiconductors and corporate IT spending.

A key theme of this earnings season is whether companies are starting to reap rewards from AI-related investments. Previously, tech stocks and other AI-related equities have been the primary drivers of the U.S. bull market—now entering its fourth year—but skepticism regarding the returns on massive investments in data centers and other infrastructure pressured these stocks toward the end of 2025.

The Federal Reserve's Interest Rate Decision Looms

This week, the market will focus intensely on the Fed's upcoming interest rate decision. Investors generally expect the Fed to maintain policy rates during the meeting on Thursday (29th) Taiwan time, continuing a wait-and-see stance following three consecutive rate cuts late last year.

However, the focus is not just on rates but also on the Fed's political independence. Recent reports of the Trump administration pressuring Fed Chair Jerome Powell, including legal threats, have sparked concerns about potential political interference in monetary policy. Furthermore, with Powell's term ending in May, Trump’s potential nomination of a successor has become a key variable closely watched by investors.

Who Will Trump Choose as the Next Fed Chair?

The Fed’s actions often rattle global economic nerves, and the selection of its new leader is highly anticipated. Trump remains coy about who will take the helm. U.S. Treasury Secretary Scott Bessent confirmed on Jan 21 that President Trump 'could announce the next Fed Chair as early as this week (the week of Jan 26),' and that there are currently 'four outstanding candidates.'

According to data from the prediction platform Polymarket, as of Jan 24, the probability of BlackRock executive Rick Rieder being appointed Fed Chair has surged to 54%, up from just 4% at the beginning of the year. Recent reports from U.S. media also suggest that Rieder has caught President Trump's attention due to a demeanor fitting for a 'Fed Chair' and his series of ideas for reforming the central bank.

Selected Economic Data

Tuesday: U.S. CB Consumer Confidence (Jan)

Wednesday: Bank of Canada Interest Rate Decision (for the period ending Jan 28)

Thursday: Federal Reserve Interest Rate Decision (for the period ending Jan 28)

Selected Events This Week

Monday: Japanese Prime Minister Sanae Takaichi delivers a speech.

Thursday: Bank of Canada Governor Tiff Macklem delivers a speech.

Thursday: Fed Chair Jerome Powell holds a monetary policy press conference.

Key Earnings This Week

Tuesday: Boeing (BA) , American Airlines Group (AAL) , General Motors (GM) , Texas Instruments (TXN)

Wednesday: AT&T (T) , ASML, Meta, Microsoft, Tesla, IBM (IBM)

Thursday: Apple, Visa (V) , Mastercard (MA)

Friday: Exxon Mobil (XOM) , American Express (AXP) , Chevron (CVX)