Core Viewpoint - The article discusses the recent performance of the US stock market, highlighting the record highs of major indices and the implications of high leverage in trading, alongside upcoming monetary policy decisions from the Federal Reserve and the Bank of Japan [1][3][6]. Group 1: Market Performance - The S&P 500 index rose by 1.46% last week, while the Nasdaq index increased by 1.02%, both closing at all-time highs [3]. - Over 40% of S&P 500 companies are set to release their Q2 earnings this week, with major tech firms like Meta, Apple, Amazon, Microsoft, and Qualcomm among them [1]. Group 2: Leverage and Risks - As of the end of June, the margin account borrowing balance for US investors surpassed $1 trillion, raising concerns about high leverage in the market [3]. - Analyst Michael Hartnett warns that the risk of a market bubble is increasing due to loose monetary policy and relaxed financial regulations [3][4]. Group 3: Federal Reserve Meeting - The Federal Reserve's meeting on July 31 is anticipated to be a significant event for global financial markets, with a 95.9% probability that interest rates will remain unchanged [6]. - Market expectations suggest a 61.9% chance of a 25 basis point rate cut in September, and a 49.5% chance in October [6]. Group 4: International Monetary Policy - The Bank of Japan is expected to maintain its interest rate at 0.5%, with a focus on its quarterly outlook report and recent US-Japan trade agreements [7][8]. - There are rising expectations for a potential rate hike by the Bank of Japan by the end of the year, contingent on global economic conditions [8].