Fed meeting and Big Tech earnings set tone for U.S. markets this week

Monetary policy and megacap tech will share the stage this week as investors look for fresh signals on the U.S. economy amid the U.S.-Iran conflict. The Federal Open Market Committee will meet and announce its interest-rate decision Wednesday, a move that is widely expected to keep the federal funds rate unchanged at 3.5% to 3.75%, where it has stood since January, before a press conference later in the day.

The rate, which influences borrowing costs on credit cards, auto loans and mortgages, remains central to the outlook. Some market participants are hopeful that cuts may arrive later this year. Lower rates can bolster spending and encourage hiring, which has been sluggish enough to cause concern among some Fed officials.

But easier policy also risks stoking inflation, a pressure the war has not helped. Earnings will provide another read on momentum. The “Magnificent Seven” take the spotlight with Alphabet, Amazon, Meta and Microsoft slated to report Wednesday, followed by Apple on Thursday.

Their results and forecasts often sway broader indexes. Some analysts remain bullish on the sector’s buildout of artificial intelligence infrastructure, though questions persist about when those investments will deliver returns. Tech has outperformed other sectors since the war began, with investors embracing AI-focused companies and, increasingly, the storage firms that support the buildout, several of which also report this week.

Stocks head into the week on a positive note. The Nasdaq and S&P 500 posted a fourth straight week of gains, even as the Dow slipped. Friday’s mostly upbeat session saw the S&P 500 rise 1.6% as tech shares climbed, oil retreated and Intel surged to record highs for the first time since 2000.

Beyond Big Tech, a busy calendar of corporate updates is due. Seagate Technology is scheduled to report fiscal third-quarter results on April 28, 2026. Chipotle Mexican Grill plans to release first-quarter results on April 29, while Western Digital and Sandisk are slated to report fiscal third-quarter results on April 30.

Chevron plans to discuss first-quarter 2026 results, and Berkshire Hathaway has scheduled its shareholder meeting for Saturday, May 2. Investors will parse the Fed’s statement and Chair’s remarks for clues on the path of rates and how policymakers assess war-related risks.

Corporate guidance, particularly from tech leaders and companies tied to AI infrastructure, will help shape expectations for spending, hiring and inflation in the months ahead.