The Week Ahead: Magnificent Seven Earnings and Fed Rate Decision Take Center Stage

TLDR

• Five of the Magnificent Seven tech companies report earnings this week, including Alphabet, Amazon, Meta, Microsoft, and Apple
• The Federal Reserve meets Wednesday and is expected to hold rates steady between 3.5% and 3.75%
• The DOJ dropped its criminal investigation into Fed Chair Jerome Powell, clearing the path for Kevin Warsh’s confirmation
• Magnificent Seven net income is estimated to grow 25% in 2026, compared to 11% for the rest of the S&P 500
• Energy giants Exxon and Chevron also report, with investors watching for impact from the Iran conflict

The busiest earnings week of the season kicks off Monday, with five of the biggest companies in the world set to open their books.

Alphabet, Amazon, Meta, and Microsoft all report on Wednesday. Apple follows on Thursday.

These five companies are part of the so-called Magnificent Seven, a group of large tech firms that have driven much of the stock market’s gains in recent years.

Tesla has already reported. Nvidia is the only member yet to report later in the season.

The Magnificent Seven had a rough start to 2026. In the final week of March, the group lost a combined $850 billion in market value. All seven stocks were negative on the year by month’s end.

Since then, things have improved. The Roundhill Magnificent Seven ETF has returned 13% over the past month, compared to a 9% gain for the S&P 500.

Morgan Stanley estimates the group’s net income will grow 25% in 2026, well ahead of the 11% expected for the remaining S&P 493 companies.

AI Spending in Focus

Investors will be watching closely for updates on AI infrastructure spending. Both Meta and Microsoft have raised questions recently — Meta announced 8,000 layoffs, while Microsoft offered buyout packages to some staff.

Alphabet said earlier this year it would roughly double its capital spending. Amazon’s CEO Andy Jassy has said the company’s chip business is “on fire.”

Apple investors will also be listening for signals from incoming CEO John Ternus, who is taking over from Tim Cook.

The broader market ended last week on a positive note. The S&P 500 rose 0.8% on Friday and gained 0.6% for the week. The Nasdaq rose 1.6% on Friday for a weekly gain of 1.5%. The Dow fell 0.2% on the day and 0.4% for the week.

Fed Holds Steady — and Powell Gets Good News

The Federal Open Market Committee meets Tuesday and Wednesday, with its rate decision due at 2 p.m. ET on Wednesday. Traders are pricing in a 99.5% chance rates stay in the 3.5% to 3.75% range.

Fed Chair Jerome Powell also received personal good news on Friday. The Justice Department dropped its criminal investigation into Powell over cost overruns during renovations at the Federal Reserve building.

The Senate Banking Committee has scheduled a session for Wednesday morning, where it could vote on Kevin Warsh’s nomination as the next Fed chair. Warsh is President Trump’s pick to replace Powell when his term ends in May.

Thursday brings the PCE inflation report for March, which is expected to show year-over-year inflation at 3.5%, up from 2.8% previously.

Energy companies Exxon and Chevron report Friday, with markets watching for any read on how the Iran conflict has affected oil supply through the Strait of Hormuz.

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