Just in: As technology stocks turmoil, investors pay close attention to the Fed's moves and corporate earnings signals.
In the week ahead, investors will be looking for clues on the likelihood of upcoming interest rate hikes, as well as early signs of the key earnings season, to gauge the strength of the U.S. stock market rebound.
The second half of 2026 kicked off this week, and the start was exactly the same as the end of the first half: the stock prices of technology giants performed volatilely, affecting the rise and fall of major stock indexes.
The choppy minutes from last month's Federal Reserve meeting, as well as earnings reports from Delta Air Lines and PepsiCo, may provide new guidance for markets that have faltered in a recent tech-driven stock market rally.
Technology stocks, especially semiconductor stocks, have fueled market gains over the past few months, with the benchmark S&P 500 gaining 14.9% in the second quarter that ended on Tuesday, its best quarterly performance since 2020. But recently, the sector has been experiencing wild swings, with a sharp drop at the end of the week.
Other sectors such as healthcare, industrials and financials have performed well over the past month, fueling investor hopes that a healthy rotation will drive market gains to extend.
"I'll be watching this closely in the coming weeks to see if this broadening of the upside continues," said Joe Mazzola, head of trading and derivatives strategy at Charles Schwab & Co.
“Or if some of the outperforming tech stocks start to see a sustained pullback, does that signal a pullback for the market as a whole?” Investors look to Fed minutes for clues on interest rates The outlook for interest rates has shifted from a stock-market-boosting rate cut expected at the start of the year to forecasts of possible rate hikes in the coming months.
On Thursday, expectations for a rate hike fell back due to lower-than-expected employment report data. Betting on rate hikes has increased following last month's Fed meeting, the first under new chairman Kevin Warsh. Warsh stressed that with inflation above the Fed's 2% annual target, the central bank will focus on achieving price stability.
Minutes of the meeting will be released on Wednesday. Warsh also warned that the Fed will no longer provide "hands-on" guidance to the market and will abandon forward guidance on what actions the Fed may take in the near future. This may further increase the importance of the minutes of future Fed policy meetings.
"I think it will be interesting to see what happens at the conference table and how much they tend to gradually move toward a more hawkish stance," said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments.
“That’s what investors and markets are paying attention to: What will this new Fed chair and the updated (Fed policymaking body) use to determine the direction of interest rates going forward?” Investors said a key topic was how Fed policymakers viewed the impact of energy prices on inflation - after surging on factors related to the Iran war, which had begun to retreat ahead of the meeting.
Another issue is the extent of disagreement among Fed officials. Rising interest rates weigh on stocks by pushing up borrowing costs for consumers and businesses and causing bond yields to rise, making bonds more attractive relative to stocks.
Federal funds futures on Thursday night showed a roughly 50-50 chance of a rate hike before the Fed's September meeting, according to London Stock Exchange Group (LSEG) data. Data released by the U.S. Department of Labor on Thursday showed that U.S.
job growth slowed sharply in June, which eased some of the market's concerns about raising interest rates in the short term. "If the Fed does adopt tighter policy and starts a tightening cycle, that would be a risk to both markets and valuations," said James Regan, co-chief investment officer and director of investment management research at D.A. Davidson.
"I think the more information we can get about the Fed's thinking on policymaking, the more important it will be." In an upcoming week of relatively light U.S. economic data, the release of services and manufacturing activity data may help clarify inflation trends.
Stocks have rebounded in recent months from losses triggered by the U.S.-Israeli conflict with Iran. So far in 2026, the S&P 500 is up more than 9%, with a higher share of technology stocks. Comprehensive index. IXIC rose 11%.
Surprisingly strong first-quarter corporate earnings underpinned market gains while setting a higher bar for expectations as the second-quarter earnings season kicks into high gear later this month. earnings: , . LSEGIBES, , S&P 500 50024%. “‘’, earnings, , ”Truist Advisory Services·.
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