What to Expect in Markets This Week: Fed Interest-Rate Decision; Earnings From Apple, Microsoft, Meta, Amazon, Alphabet

Core Insights - The Federal Reserve is expected to cut interest rates by a quarter percentage point, bringing the federal funds rate to a range of 3.75% to 4% amid concerns over labor market weakness and ongoing inflation above target levels [3][4]. Group 1: Federal Reserve and Economic Indicators - Fed Chair Jerome Powell's upcoming remarks are anticipated to provide insights into the central bank's future actions following the interest rate decision [2]. - The U.S. government shutdown is affecting the release of key economic data, including inflation metrics and employment statistics, which are crucial for assessing economic health [5][6]. Group 2: Corporate Earnings and AI Focus - The "Magnificent Seven" tech companies, including Microsoft, Apple, and Meta, are set to report quarterly earnings, with a focus on developments in artificial intelligence spending [7][8]. - Microsoft is expected to lead the earnings reports with a significant $40 billion AI data center deal involving chipmaker Nvidia, while Alphabet is close to finalizing a deal with AI startup Anthropic [8]. Group 3: Upcoming Earnings Reports - Key earnings reports this week include major companies such as Exxon Mobil, Visa, UnitedHealth Group, and Caterpillar, which will highlight various industrial sectors [8][11]. - Apple is anticipated to report strong sales for its newly released iPhone 17 model, contributing to its recent stock price surge [8].