The Week Ahead: Fed Reserve Meeting and Tech Giant Earnings on Deck

TLDR

• Federal Reserve meets Wednesday with 87% probability of 0.25% interest rate cut to 3.5%-3.75% range
• Jerome Powell press conference after rate decision will outline Fed’s 2026 monetary policy direction
• Oracle, Broadcom, and Adobe report earnings Wednesday focusing on AI infrastructure investments
• Costco earnings Thursday after filing lawsuit against Trump administration over tariffs
• Economic data includes job openings Tuesday, trade deficit Thursday, and jobless claims Thursday

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The Federal Reserve holds its final policy meeting of 2025 on Wednesday. Markets are pricing in an 87% chance of another interest rate cut.

The Federal Open Market Committee is expected to reduce rates by 0.25%. This would bring the target range down to 3.5%-3.75%.

The decision comes without complete economic data. Government shutdown delays have left Fed officials without recent jobs reports.

Despite missing data, labor market concerns are driving the expected rate cut. Inflation stays above the Fed’s 2% target but employment worries remain a priority.

Fed Chair Jerome Powell will hold a press conference after the announcement. His comments will be closely watched for clues about rate policy in early 2026.

E-Mini S&P 500 Dec 25 (ES=F)

U.S. stock indexes posted gains last week. The Nasdaq led the way higher as investors anticipated the rate cut.

Major Tech Companies Report AI Spending

Oracle reports quarterly earnings on Wednesday after market close. The software company’s stock fell in November over concerns about debt levels from AI infrastructure buildout.

Broadcom also releases results on Wednesday. The AI chipmaker’s shares have climbed on strong demand from Google-parent Alphabet.

Adobe reports Wednesday evening as well. Investors want to see how the graphics software maker’s AI tools are performing in sales.

Microsoft may move chip production from Marvell Technology to Broadcom. The potential switch shows ongoing shifts in AI chip partnerships.

GameStop reports Tuesday after the close. The gaming retailer continues working on its digital transformation strategy.

Retail Sector Provides Consumer Health Check

Costco releases earnings on Thursday. The warehouse club recently sued the Trump administration over trade policy disagreements.

AutoZone reports Tuesday morning. The auto parts chain missed profit targets last quarter while spending more on store expansion.

Lululemon announces results on Thursday. The athletic wear brand will shed light on holiday shopping trends.

Key Economic Data Throughout Week

Job openings for October arrive Tuesday morning. The report measures employer demand for workers.

Source: Forex Factory

Trade deficit data for September is scheduled for Thursday. The numbers will show the gap between imports and exports.

Initial jobless claims for the week ending December 6 come out Thursday. The weekly figure tracks unemployment insurance applications.

The federal budget report for November releases Wednesday. Wholesale inventories for September also arrive this week.

Chicago Fed President Austan Goolsbee speaks Friday. His remarks could provide more insight into Fed thinking.

The 10-year Treasury yield stood at 4.14% heading into the week. Gold traded at $4,197.81 per ounce while oil sat at $60.19 per barrel.

Bitcoin traded near $89,300 this week. The cryptocurrency remains above its key support level at $82,150.

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