The Week Ahead: Fed Rate Decision and Major Tech Earnings Set to Drive Markets

TLDR

• Federal Reserve expected to cut interest rates by 0.25% on Wednesday, bringing rates to 3.5%-3.75% range
• Fed Chair Jerome Powell will hold press conference after rate decision to discuss 2026 monetary policy outlook
• Major tech earnings reports scheduled from Oracle, Adobe, and Broadcom focusing on AI infrastructure spending
• Costco reports Thursday after recently suing Trump administration over tariff policies
• Economic data releases include job openings, trade deficit figures, and jobless claims throughout the week

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The Federal Reserve will hold its final meeting of 2025 this week. Market participants expect another interest rate cut on Wednesday.

The Federal Open Market Committee will likely reduce rates to a range between 3.5% and 3.75%. This would mark the third consecutive rate cut from the central bank.

Fed officials are making their decision without complete economic data. The government shutdown delayed several key reports including the latest jobs numbers.

Labor market concerns are pushing the central bank toward another rate reduction. Inflation remains above the Fed’s target level but employment worries take priority.

Fed Chair Jerome Powell will speak after the rate announcement. His press conference could provide guidance on the central bank’s plans for early 2026.

Markets currently show an 87% probability of a quarter-point rate cut. U.S. stock indexes posted modest gains last week with the Nasdaq leading higher.

Tech Companies Report AI Infrastructure Spending

Oracle releases its earnings report on Wednesday. The software company’s stock dropped in November over debt concerns related to its AI infrastructure investments.

AI chipmaker Broadcom also reports this week. The company’s share price has risen on optimism about its relationship with Google-parent Alphabet.

Adobe reports Wednesday as well. Investors will examine the graphics software maker’s AI product sales despite recent stock price declines.

Microsoft may shift its chip production from Marvell Technology to Broadcom. The potential change highlights ongoing competition in the AI chip sector.

Retail Earnings Provide Consumer Spending Insights

Costco reports earnings on Thursday. The warehouse retailer recently filed a lawsuit against the Trump administration challenging its trade policies.

AutoZone releases results on Tuesday. The auto parts retailer missed profit expectations last quarter while increasing spending on new store locations.

GameStop reports on Tuesday after market close. The gaming retailer continues to focus on its digital business strategy.

Lululemon reports on Thursday. The athletic apparel company will provide data on holiday season consumer spending patterns.

Economic Data Releases Continue This Week

Job openings data for October arrives on Tuesday. The report will offer insights into labor market demand.

Source: Forex Factory

The U.S. trade deficit numbers for September come out on Thursday. Initial jobless claims for the week ending December 6 will also be released Thursday.

The monthly federal budget report for November is scheduled for Wednesday. Wholesale inventories data for September rounds out the economic calendar.

Chicago Fed President Austan Goolsbee will speak on Friday. His remarks may provide additional context on the central bank’s thinking.

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