Apple, Microsoft, Amazon and Meta Set to Report Earnings Amid Fed, BOJ and BoC Rate Decisions 【The week ahead】

TradingKey - U.S. stocks continued to rally last week, with the Dow Jones Industrial Average gaining 1.26%, the Nasdaq Composite rising 1.02%, and the S&P 500 advancing 1.46%. The S&P 500 closed at a record high for the fifth consecutive session, marking its 13th all-time high of 2025 so far. This week, financial markets face a series of critical tests. A self-imposed August 1 deadline by former President Donald Trump for tariff negotiations looms—if no agreement is reached by then, it could trigger significant volatility across financial assets. The Federal Reserve is set to release its latest interest rate decision early Thursday morning, with markets widely expecting policymakers to hold rates steady. Meanwhile, earnings season reaches a fever pitch this week, as tech giants Apple, Microsoft, Amazon, and Meta report their latest results—offering key insights into whether the artificial intelligence boom can continue to fuel market gains.

Preview of major events

Trump's "reciprocal tariffs" set to take effect August 1

On July 15 local time, U.S. President Donald Trump announced that new tariffs will take effect starting August 1, including a 50% tariff on all copper imports into the United States.

According to Xinhua News Agency, the latest developments indicate that August 1 is not only the scheduled implementation date for the new round of reciprocal tariffs, but also the deadline for the announcement of industry-specific tariffs across a broad range of sectors. Trump stated that the U.S. government is planning to impose additional tariffs on pharmaceuticals, semiconductors, and several other targeted industries. He specifically cited the possibility of levying new tariffs as high as 200% on foreign-made pharmaceuticals.

Federal Reserve Chair Jerome Powell will hold a monetary policy press conference on July 31.

The Federal Open Market Committee (FOMC) will hold its policy meeting this week, with Federal Reserve policymakers expected to keep policy on hold while remaining sensitive to deteriorating global trade conditions and slowing investment trends.

Analysts at Bank of America highlighted that the tug-of-war between former President Donald Trump and Fed Chair Jerome Powell over interest rate cuts will be a key focus of the meeting, though markets may still receive a favorable signal. While Powell is widely expected to reaffirm the Fed’s independence and maintain rates unchanged, he could strike a more dovish tone—opening the door for rate cuts if inflation continues to align with expectations. The analysts cautioned that inflationary fears triggered by an escalation in the trade war could disrupt the timing of rate cuts, but as long as the economy continues to cool, the Fed is still likely to initiate a easing cycle.

U.S. July jobs report draws heightened attention

The U.S. Bureau of Labor Statistics will release the July nonfarm payrolls report on Friday, with the change in nonfarm payrolls drawing the most attention. The prior reading stood at 147,000, while the consensus forecast is a more pessimistic 110,000.

The U.S. labor force has contracted over the past several months, a trend that may signal growing pressure on the job market from restrictive immigration rhetoric and large-scale deportation measures. Additionally, recent data has shown manufacturing employment declining for a second consecutive month—an ominous sign for one of the Trump administration’s core economic priorities.

Wall Street Set to Receive Key Earnings Reports

The U.S. Bureau of Labor Statistics will release the July nonfarm payrolls report on Friday, with the change in nonfarm payrolls being the most closely watched figure. The previous reading came in at 147,000, while the consensus forecast is a more subdued 110,000, reflecting a pessimistic outlook.

The size of the U.S. labor force has contracted over the past several months, a trend that may indicate mounting pressure on the job market from anti-immigration rhetoric and large-scale deportation policies. Furthermore, the latest data shows manufacturing employment declined for the second consecutive month—an alarming development for one of the Trump administration’s key economic priorities.

Selected Economic Data

Wednesday: U.S. Q2 Actual GDP Annualized Quarterly Growth Rate (Preliminary)

Thursday: U.S. June Core PCE Price Index Year-over-Year, Federal Reserve FOMC Interest Rate Decision

Friday: U.S. July Nonfarm Payrolls Change (in thousands)

This week's featured events

Monday: He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, travels to Sweden from July 27 to 30 for economic and trade talks with U.S. officials.

Tuesday: The Bank of Canada announces its interest rate decision and releases the Monetary Policy Report.

Thursday: Federal Reserve Chair Jerome Powell holds a monetary policy press conference. Bank of Japan Governor Kazuo Ueda holds a monetary policy press conference.

Company Financial Report

Monday: Boeing (BA.N), AstraZeneca (AZN.O), Merck (MRK.N)

Wednesday: Meta Platforms (META.O), Microsoft (MSFT.O), Arm (ARM.O), Robinhood (HOOD.O)

Thursday: Amazon (AMZN.O), Apple (AAPL.O), Shell (SHEL.N), Comcast (CMCSA.O), Mastercard (MA.N)

Friday: ExxonMobil (XOM.N), Chevron (CVX.N)