The upcoming week will be pivotal, with a packed schedule of economic data releases and earnings reports from major tech giants Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Apple (NASDAQ:AAPL). Both earnings results and management commentary could heavily influence the next direction of the market. On the economic front, particular attention will be on Wednesday’s GDP report, which will be critical for shaping overall sentiment. Although the full effects of the tariffs are unlikely to be reflected yet, any signs of softness or negative surprises could either exacerbate recent volatility or, conversely, fuel the ongoing rebound.
Much of the market’s tone will continue to hinge on developments surrounding the trade war and tariffs. Hopes remain that deals can be struck before the 90-day pause expires. Late last week, the market appeared to look past mixed reports regarding the status of China-U.S. negotiations, staging a strong rally. Importantly, both sides have started carving out exceptions to certain tariffs—an indication that they recognize the significant economic disruptions the tariffs are causing, and possibly a sign that both are motivated to reach a mutually beneficial agreement. If progress materializes or if formal deals begin to roll in, the market could be poised for a meaningful run, particularly if corporate earnings continue to reflect a resilient economy.
Bond yields and the U.S. dollar index have also stabilized as combative rhetoric from the Trump administration has cooled and negotiation efforts seem to be progressing. These indicators remain important to watch, as renewed volatility in either could quickly spill over into equities.
It’s important to remain patient. If a sustained recovery is underway, it will take time to fully develop. There is no need to rush to catch the absolute bottom—deploy capital thoughtfully and methodically as the situation becomes clearer.
Monday
Tuesday
Earnings: SOFI SNAP V
Wednesday
PCE Index, GDP, ADP Employment
Earnings: MSFT META HOOD QCOM
Thursday
Manufacturing PMI
Earnings: AMZN AAPL MSTR ROKU MA
Friday
Employment
Earnings: XOM CVX
Tracking This Week
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Costco (NASDAQ:COST) has been trading sideways but gradually moving higher over the past few weeks, likely waiting for a catalyst to push it higher in this uncertain environment. That could come this week with the wave of economic data, earnings, and potential trade developments, or it may have to wait until monthly sales figures are released early next month. Either way, Costco remains a strong long-term performer with global expansion plans and is trading at a reasonable level.
Meta Platforms (NASDAQ:META) will report earnings on Wednesday after the close. The stock has been under pressure since hitting its all-time high of $740, as investors took profits and then had a slew of negative headlines including regulatory pressure and tariffs impacting revenue. Chinese giants Temu and Shein have reportedly cut ad spending, which could translate into a $7 billion revenue hit. However, the selloff looks overdone, as Meta remains unrivaled in digital advertising and tariffs are, by nature, temporary. With a relatively low PE ratio of 23, the $550 level looks attractive for long-term accumulation despite near-term uncertainty heading into earnings.
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