Market Pulse: A Week of High Stakes Ahead
The coming week promises to be one of the most eventful of 2025, with a plethora of market-moving events and data releases set to shape the investment landscape.
Fed Meeting and GDP Data Take Center Stage
The Federal Reserve’s next interest rate decision, scheduled for Wednesday, will be closely watched, although no rate change is expected. However, Chairman Powell’s comments will be scrutinized for hints on future monetary policy. Additionally, the release of new GDP data on Thursday will provide valuable insights into the state of the economy.
Earnings Season Heats Up
The earnings calendar is packed, with a slew of high-profile companies set to report, including AT&T, Boeing, Tesla, Microsoft, Meta Platforms, Apple, Visa, Mastercard, Exxon-Mobil, and Colgate-Palmolive. So far, 78 S&P 500 companies have reported, with earnings growth showing a promising 10% increase from the prior-year quarter.
Financial Sector Leads the Way
The financial sector has seen the most companies report so far, with a remarkable 28% growth rate, according to Refinitiv. This strong performance has led to an upward revision of our 2025 and 2026 forecasts for S&P 500 EPS growth, with estimates now standing at 12% and 11%, respectively.
New Treasury Secretary and Fiscal Policies
The likely confirmation of Scott Bessent as Treasury Secretary this week may have the most lasting impact on the markets. With his background as a global macro hedge fund manager, Mr. Bessent brings valuable expertise in identifying market conditions and economic policies.
Other Key Releases
Rounding out the busy week will be the release of New Home Sales on Monday, Durable-Goods Orders and the Case-Shiller Home Price Index on Tuesday, and the Personal Consumer Expenditures Index on Friday.
Market Performance
Last week saw the Dow Jones Industrial Average gain 2.2%, the S&P 500 rise 1.7%, and the Nasdaq pop 1.6%. So far in 2025, all three indices are up between 3% and 4%.
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