This week, the US financial markets are set for the year’s most highly anticipated "super event week." Key developments include the Federal Reserve (Fed) interest rate decision, Q2 GDP, core PCE inflation data, and earnings reports from tech giants like Microsoft, Apple, Meta, and Amazon. As a result, market sentiment has turned more cautious. With investors re-evaluating the returns on AI capital expenditures, the growth potential of tech stocks has become a pivotal factor that could shape the future direction of US equities.
US Stocks Enter a Super Week of Central Bank Decisions and Earnings
This week marks one of the most critical observation windows for global financial markets in 2024. Besides the Fed’s latest interest rate decision, the market will closely watch key US economic data, including Q2 GDP, Core PCE, labor costs, and consumer confidence. At the same time, leading global tech companies such as Microsoft, Meta, Apple, and Amazon will release their latest earnings reports. Market participants expect these events to collectively determine the direction of US equities over the coming weeks.
(Source: TradingView)
Looking back at last week, all three major US indices closed lower. The Nasdaq fell over 2%, while both the S&P 500 and Dow Jones Industrial Average weakened in tandem, indicating that investors have already reduced their risk exposure in anticipation of these major events.
Will the Fed Signal a New Policy Direction?
(Source: MacroMic)
Currently, the market widely expects the Fed to keep the federal funds rate unchanged in the 3.50% to 3.75% range. However, more important than the rate decision itself will be Chair Powell’s outlook on future policy. Recent tensions in the Middle East have driven international oil prices back toward $100 per barrel, sparking concerns that rising energy costs could reignite inflation. This could prompt the Fed to delay rate cuts or even reconsider another hike. In addition, this week’s releases—Q2 GDP, core PCE, personal income, and spending—will provide crucial evidence for assessing the resilience of the US economy. If the data beats expectations, it could reinforce the Fed’s stance on maintaining higher rates for longer. Conversely, weaker data could quickly shift market expectations for future policy.
Market Reassesses AI Investments
Beyond the macroeconomic picture, a core focus this earnings season is whether major tech companies’ AI investments are starting to yield real returns. Over the past two years, global tech giants have poured hundreds of billions of dollars into building AI data centers, GPUs, and cloud infrastructure. Now, the market is less concerned with how much is being spent and more focused on when these investments will become profitable.
Alphabet’s latest earnings are a case in point. While Google Cloud continues to grow rapidly and search advertising remains stable, the company also raised its future capital expenditure outlook, compressing free cash flow. This has sparked worries that heavy AI spending could weigh on profitability, leading to a noticeable correction in the stock price. Tesla faces a similar scenario. While investors remain optimistic about the AI narratives around autonomous driving and humanoid robots, they are increasingly demanding concrete commercial results rather than just future visions. As a result, Tesla’s stock has seen significant volatility post-earnings.
Is AI Entering Its Second Phase?
The market’s focus has shifted from whether AI can change the world to whether it can generate sufficient profits for companies. Meanwhile, the rapid development of open-source large language models is changing previous investment logic. If model costs continue to fall, companies may no longer need to make massive ongoing hardware investments, which could prompt a reassessment of growth expectations for semiconductors, data centers, and AI infrastructure. This week, the market will closely watch whether Microsoft, Meta, Amazon, and others continue to ramp up AI investment and how their management teams frame future capital expenditure. These factors could drive the next wave in tech stocks.
Market Risks Continue to Rise
Beyond earnings, several technical signals in the market now warrant attention.
Key observations include:
The S&P 500 has broken below a key moving average.
Credit default swap (CDS) spreads for tech stocks are widening.
Goldman Sachs trading desks report continued long-term portfolio adjustments.
Demand for safe-haven assets is gradually increasing.
Some analysts believe current market valuations are still based on the assumption of sustained high earnings growth. Any disappointment in earnings or economic data could amplify market volatility.
On the other hand, there are optimistic views as well. The S&P 500’s Q2 earnings remain robust, and as long as major tech companies meet expectations, the bull market could continue.
Greater Volatility in Tech Stocks Calls for Global Diversification
Recent market trends show investors are no longer focused solely on individual companies. Instead, they are reconsidering global portfolio allocation. Beyond US tech stocks, Asian markets—including AI, semiconductors, advanced manufacturing, and new energy—are attracting increasing capital. As a result, investors are seeking faster and more convenient ways to access different markets.
Gate Stock: Your New Gateway to Global Equity Investment
With rising demand for global equity investments, Gate has officially launched its web-based stock trading platform. Now, users can trade global stocks not only via the app but also through the web. Gate Stock has built a comprehensive global equity product lineup, supporting over 12,500 stocks and ETFs across US, Hong Kong, and South Korean markets. US stocks alone offer more than 10,000 tradable securities, covering Nasdaq, NYSE, NYSE Arca, NYSE American, and BATS. For Hong Kong, over 1,500 listed companies are available. In Korea, the first phase supports the top 1,000 companies by market cap on the Korea Exchange (KRX), including well-known names like Samsung Electronics, SK Hynix, NAVER, Hyundai Motor, and Celltrion. Whether your focus is AI, semiconductors, finance, consumer brands, or new energy, you can diversify across markets on a single platform.
Trade Stocks Directly with USDT—Lowering the Global Investment Barrier
Unlike traditional overseas brokers that require account openings, currency exchange, and cross-border transfers, Gate Stock offers a more convenient way to trade. Qualified users can trade stocks and ETFs directly with USDT, eliminating the need to convert to USD, HKD, or KRW, or open multiple overseas accounts. This greatly improves the efficiency of global market participation. The platform also supports fractional share trading from as little as 0.01 shares, allowing flexible allocation even for high-priced stocks.
24/7 Trading—Seize Every Market Opportunity
Major events like earnings releases, Fed decisions, and key economic data often happen after hours, causing rapid price swings. Gate Stock now supports 24/7 trading, including pre-market, regular, after-hours, and newly added overnight and weekend sessions. Currently, 197 popular stocks are available for round-the-clock trading, including Apple, NVIDIA, Tesla, Meta, Amazon, as well as Tencent, Xiaomi, Samsung Electronics, and SK Hynix. For investors looking to react instantly to market news, this feature boosts trading flexibility—no need to wait for the next official session.
One-Stop Management of Global Stock Assets
Gate Stock adopts a unified account structure, enabling trading and management of US, Hong Kong, and Korean stocks in a single account. Investors can view positions, P&L, cash flows, and corporate actions all in one place, without switching between brokers or markets. This greatly enhances cross-market asset management efficiency. In addition, all stock products are integrated into the Gate VIP tier system, allowing qualified users to enjoy preferential trading fees and dedicated customer service, further optimizing the overall investment experience.
Conclusion
This week brings the Fed’s interest rate decision, Q2 GDP, core PCE inflation data, and earnings from Microsoft, Apple, Meta, and Amazon. Both macroeconomic policy and AI investment trends could become major turning points for global equities. In a potentially more volatile environment, investors should look beyond short-term trends and focus on cross-market and diversified asset allocation. With Gate Stock’s official launch of US, Hong Kong, and Korean stock trading, support for direct USDT transactions, fractional shares, and 24/7 trading, investors can now access global capital markets more efficiently and at a lower barrier—capturing long-term opportunities driven by technological innovation and global industry development.
FAQ
Q1: What are the key events to watch in the US stock market this week?
This week, the market will focus on the Fed’s interest rate decision, Q2 GDP, core PCE inflation data, and earnings from major tech companies like Microsoft, Apple, Meta, and Amazon. These events could shape market expectations for interest rate policy, corporate earnings, and the outlook for AI investments—driving volatility in US equities.
Q2: Why is AI capital expenditure a focal point this earnings season?
In recent years, tech giants have poured significant resources into AI and data center development. The market now cares more about whether these investments are starting to generate real returns. If companies cannot demonstrate sufficient returns from AI investments, it could impact investor confidence and stock performance.
Q3: What are the features of Gate Stock?
Gate Stock supports US, Hong Kong, and Korean markets, offering over 12,500 stocks and ETFs. Qualified users can trade directly with USDT, invest in fractional shares starting from 0.01, and access 24/7 trading—enabling more flexible participation in global capital markets.
