This week is pivotal for the stock market, with the Federal Reserve’s interest rate decision and earnings reports from four of the Magnificent 7. These stocks have driven more than half of the market’s gains over the past year, making their performance and guidance critical. High expectations leave little room for disappointment, and any signs of weakness—such as margin compression from higher-than-expected capital costs for AI—could trigger a broad market selloff. Forward guidance will be a key factor in shaping market sentiment.
The Fed is not expected to cut rates, so the decision itself should not surprise the market. However, volatility could arise depending on the tone and content of Fed Chair Powell’s post-meeting remarks. Additionally, Friday’s PCE data, the Fed’s preferred inflation gauge, has the potential to further impact market direction.
VIX could be helpful to protect against the downside.
Monday
Earnings: SOFI
Tuesday
Earnings: SBUX
Wednesday
Fed rate decision
Earnings: IBM LRCX META MSFT TSLA
Thursday
GDP
Earnings: AAPL INTC V
Friday
PCE
Earnings: CVX XOM
Tracking This Week
Accenture (NYSE:ACN) has been trading within a wide range in recent months but appears to be trending upward. With earnings not expected until March, a move beyond $380 seems unlikely unless driven by broader market sentiment. While the company faces long-term headwinds related to its positioning in AI, it is currently benefiting as clients turn to Accenture for guidance and implementation expertise in the near term.
Advanced Micro Devices Inc. (NASDAQ:AMD) has faced persistent challenges but continues to show resilience. The new administration’s support for building AI infrastructure in the U.S. should provide a confidence boost for investors. While disappointing guidance from Texas Instruments (NASDAQ:TXN) last week weighed on the broader semiconductor sector, the impact may be more specific to the analog chip market rather than digital. After a difficult few months, AMD could attract value buyers ahead of its February 4 earnings report.
Netflix (NASDAQ:NFLX) delivered an outstanding earnings report, highlighted by a 16% year-over-year growth in subscribers, surpassing 300 million and expectations. The company demonstrated strong confidence in its pricing power by announcing subscription price increases, which also led to raised guidance. While the macro environment may pose challenges, Netflix’s momentum is likely to persist. This doesn’t necessarily suggest a steep rally but should provide solid downside protection for the stock.
Workday (NASDAQ:WDAY) rebounded from key technical support levels last week, offering reassurance of underlying stability. However, this short-term strength may be limited if macro conditions turn unfavorable. Weakness in mega-cap tech or a reversal signaled by Friday’s PCE data could quickly outweigh the recent technical bounce.
