Fed interest rate decision; Profits from Apple, Microsoft, Meta, Amazon, and Alphabet

The Federal Reserve’s interest rate decision and Magnificent Seven earnings series are among the most important events next week for investors, who will also continue to monitor the effects of the government shutdown.

The Fed is generally expected to cut interest rates, and many will quickly look to comments from Fed Chairman Jerome Powell for clues about what the central bank will do next. All major US indexes posted gains last week, with Friday’s strong session leaving the Dow Jones to close above 47,000 for the first time.

Meanwhile, investors will digest a busy string of earnings as they listen to the latest artificial intelligence (AI) developments and other updates from technology leaders Apple, Microsoft, Meta, Amazon and Google’s parent company, Alphabet. Figures from oil companies, health care providers, credit card issuers, heavy equipment makers, travel bookers and beverage vendors are also due this week.

Read down to the bottom for our calendar of key events – and something else.

Interest rate cut expected amid data drought due to lockdown

Market watchers expect the Federal Reserve to cut interest rates for the second time this year when it concludes its meeting on Wednesday. The central bank is expected to cut the federal funds rate by a quarter of a percentage point, to a range of 3.75% to 4%.

The Federal Reserve’s next move comes amid growing concerns about weakness in the labor market. Lower borrowing costs could help stimulate business activity and create more job opportunities. However, the decision to cut interest rates comes as inflation remains above the Fed’s target level, and a rate cut could mean upward pressure on prices.

The US government shutdown is expected to enter its second month. The work stoppage led to the closure of many statistical agencies that publish data on employment, price levels and other key economic metrics. Inflation data, factory orders and US trade balance reports, originally scheduled for release this week, are likely to be affected by the shutdown. Private sector data on consumer confidence, home price levels and pending home sales remain on schedule.

Seven fascinating reports that are likely to continue to focus on artificial intelligence

Most Magnificent Seven will release quarterly earnings this week. They are expected to provide more news and context on the state of AI spending, which could add to recent volatile market movements.

It will be a crowded list of company reports. Three big companies come in on Wednesday, with Microsoft, the world’s second-largest, topping the list after unveiling a new $40 billion artificial intelligence data center deal involving chip maker Nvidia. Alphabet’s report comes as the search giant was said to be close to closing a major deal with artificial intelligence startup Anthropic. The Meta report, Facebook’s parent company, will likely provide more details about the company’s recent move toward AI-powered energy glasses.

Leading Thursday’s calendar is Apple, which is rising after its stock price hit a record high thanks to a strong sales report for its newly released iPhone 17 model. Investors may want to hear news of Amazon Web Services’ internet outage when it hosts its quarterly earnings call Thursday afternoon.

Earnings releases from ExxonMobil, Visa, UnitedHealth Group, Caterpillar, Boeing, Eli Lilly and Anheuser-Busch are likely to focus on several other industry sectors.

Quick links: Summary of last week’s trading | Read the latest Investopedia news

This week’s calendar

Monday 27 October

• Data delayed by the lockdown: Durable Goods Orders (September)
• Key Earnings: Welltower (WELL), Cadence Design Systems (CDNS), Waste Management (WM), Hartford Insurance Group (HIG)

Tuesday 28 October

• Consumer Confidence (October)
• More data to watch: S&P Case-Shiller Home Price Index (August)
• Key Earnings: Visa (V), UnitedHealth Group (UNH), Novartis (NVS), Booking Holdings (BKNG), Royal Caribbean (RCL)

Wednesday 29 October

• Federal Open Market Committee (FOMC) decisions on interest rates
• Press conference by Federal Reserve Chairman Jerome Powell
• More data to watch: Pending Home Sales (September)
• Data delayed by the shutdown: Advance US Goods Trade Balance (September), Advance Retail Inventories (September), Advance Wholesale Inventories (September)
• Key Earnings: Microsoft (MSFT), Google (GOOG, GOOGL), Meta (META), Caterpillar (CAT), ServiceNow (NOW), Verizon (VZ), Boeing (BA), CVS (CVS), Starbucks (SBUX), Carvana (CVNA)

Thursday 30 October

• Data delayed by the shutdown: Initial Jobless Claims (week ending October 25), GDP (Q3)
• Key Earnings: Apple (AAPL), Amazon (AMZN), Eli Lilly (LLY), Mastercard (MA), Merck (MRK), Shell (SHEL), Gilead Sciences (GILD), Anheuser-Busch (BUD), Comcast (CMCSA)

Friday 31 October

• Chicago Business Indicator (PMI) (October)
• Data delayed by the lockdown: Personal Consumption Expenditure Index (September), Employment Cost Index (Q3)
• Key Earnings: ExxonMobil (XOM), AbbVie (ABBV), Chevron (CVX), Colgate-Palmolive (CL)

Another thing

The Los Angeles Dodgers and Toronto Blue Jays face off in the World Series. While only one team can win the Commissioner’s Cup, Investopedia Aaron McDade talks about how players from each team will benefit from being part of the Fall Classic.