The Stock Market This Week: President Trump's Tariffs, the Fed's Interest Rate Decision, and Big Tech Earnings

Market Overview - The U.S. stock market is experiencing volatility due to President Trump's tariff threats, the Federal Reserve's interest rate decision, and earnings reports from major tech companies [1][2][11] - The S&P 500 index had a 2% increase before a drop of over 2% following tariff announcements [1] Federal Reserve Interest Rate Decision - The Federal Open Market Committee (FOMC) is expected to maintain the federal funds rate at 3.5% to 3.75% during its meeting on January 28 [3] - The likelihood of a 25-basis-point cut is only 4% according to CME Group's FedWatch tool [3] - Recent economic data suggests a resilient jobs market, with the unemployment rate improving to 4.4% in December from 4.5% in November [4][5] Earnings Reports from "Magnificent Seven" - Four companies from the "Magnificent Seven" will report earnings this week: Tesla, Microsoft, Meta Platforms, and Apple [6][11] Tesla - Expected revenue for Tesla in Q4 is $24.9 billion, a 3% decrease, with non-GAAP earnings projected to drop 45% to $0.40 per diluted share [6] - Focus will be on CEO Elon Musk's comments regarding physical AI initiatives [7] Microsoft - Anticipated revenue increase of 15% to $80.3 billion, with non-GAAP earnings expected to rise 20% to $3.86 per diluted share [8] - Investors will pay attention to Azure's revenue growth and generative AI adoption [8] Meta Platforms - Expected revenue growth of 21% to $58 billion, with non-GAAP earnings projected to increase 3% to $8.23 per diluted share [9] - Investors are looking for continued trends in engagement and advertising conversion rates due to AI investments [9] Apple - Expected revenue increase of 11% to $138 billion, with GAAP earnings also projected to rise 11% to $2.67 per diluted share [10] - Market focus will be on iPhone sales and updates regarding AI innovation [10]