Daily Market Update: Microsoft, Meta, Tesla, Apple Report as Fed Meets Wednesday

TLDR

• Federal Reserve holds its first 2026 interest rate meeting on Wednesday with no rate cut expected after three consecutive cuts in prior meetings
• Microsoft, Meta Platforms, Tesla report earnings Wednesday followed by Apple on Thursday as investors watch AI spending and revenue growth
• Morgan Stanley warns Meta must show clearer AI product drivers to justify its current valuation
• Boeing, General Motors, Caterpillar, and other industrial companies report this week as indicators of U.S. manufacturing strength
• Major financial firms Visa, Mastercard, and energy giants Exxon and Chevron round out the earnings calendar through Friday

The Federal Reserve holds its first interest rate meeting of 2026 on Wednesday. The Federal Open Market Committee is not expected to cut rates after lowering them at three consecutive meetings last year.

Market participants have priced in the likelihood that rates will remain steady. This comes after inflation data last week showed prices stayed elevated in November.

Fed Chair Jerome Powell will hold a press conference following the rate decision. Investors will parse his comments for clues about future policy moves.

The meeting comes as the Fed faces pressure from the White House to lower rates. However, Fed officials have said they want more economic data on inflation and the labor market before making additional cuts.

Tech Giants Take Center Stage

Wednesday brings earnings reports from three Magnificent 7 companies. Microsoft, Meta Platforms, and Tesla will all release quarterly results on the same day.

Apple follows on Thursday with its earnings report. The iPhone maker recently announced a partnership with Alphabet on AI initiatives.

Microsoft shares have declined to start the year. Investors will look for updates on the company’s AI and cloud businesses.

Tesla faces questions about slowing deliveries. The company will need to highlight new growth opportunities in its report.

Meta Platforms faces scrutiny over its AI strategy. Morgan Stanley warned the company needs to show clearer long-term drivers tied to AI products, messaging, and engagement tools.

The social media giant has shifted focus away from its metaverse projects. Investors want to see how AI investments will translate to revenue growth.

Other tech companies reporting include chipmaker Texas Instruments and chip equipment maker ASML. IBM also releases results this week.

Industrial and Financial Reports

The earnings calendar extends beyond tech. Boeing and General Motors report on Tuesday along with defense contractor Northrop Grumman.

Caterpillar reports Thursday. The heavy equipment maker serves as a barometer for manufacturing activity and infrastructure spending.

Telecom companies AT&T and Verizon both report this week. AT&T releases results Wednesday while Verizon reports Friday.

Financial firms feature prominently with Visa and Mastercard reporting Thursday. Both payment processors will provide insight into consumer spending trends.

Energy giants Exxon Mobil and Chevron close out the week with Friday reports. American Express also reports Friday.

Steel producers Nucor and Steel Dynamics kick off the week with Monday earnings. These reports will show demand trends in the steel and manufacturing sectors.

UnitedHealth Group leads Tuesday’s healthcare earnings. The insurance giant often sets the tone for the healthcare sector.

Economic data releases include durable goods orders on Monday and consumer confidence on Tuesday. The delayed December producer price index comes out Friday along with November trade deficit data.

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