All Eyes on Four Key "Mag 7" Earnings Results

• Microsoft expects 17.6% earnings growth and 16.2% revenue growth; Meta projects 4.35% earnings growth and 31.15% revenue growth; Amazon anticipates modest 0.63% earnings growth; Alphabet faces projected -6% earnings decline despite 20.6% revenue growth due to massive AI capex spending
• AI equipment segment surged 3.7% in March, driving non-Defense ex-aircraft durable goods orders up 3.3% (highest in almost six years), demonstrating tangible effects of Big Tech AI infrastructure investments on broader economy
• The FOMC is 100% certain to hold rates steady at 3.50-3.75% (unchanged since December 2025), marking Jerome Powell's final meeting before Kevin Warsh assumes the Fed Chair role in June

Market Summary: Critical Day for Markets with Mag 7 Earnings and FOMC Decision

Key Events

Today marks a pivotal trading session featuring Fed Chair Jerome Powell's final FOMC meeting (before Kevin Warsh takes over in June) and quarterly earnings from four "Magnificent 7" tech giants. The FOMC is 100% certain to maintain the Fed funds rate at 3.50-3.75%, unchanged since December.

Major Earnings Calendar

After-hours releases include:

• Microsoft (MSFT): Expected +17.6% earnings growth, +16.2% revenue growth
• Meta Platforms (META): Projected +4.35% earnings growth, +31.15% revenue growth
• Amazon (AMZN): Anticipated +0.63% earnings growth, +14.24% revenue growth
• Alphabet (GOOGL): Forecasted -6% earnings decline, +20.6% revenue growth

AI capital expenditure levels will be closely monitored across all four companies.

Morning releases:

• Phillips 66 (PSX): Beat by +189% (+$0.49 per share)
• AbbVie (ABBV): Beat by 3 cents per share
• Biogen (BIIB): Beat by +21% ($3.57 per share)

Economic Data Highlights

March indicators exceeded expectations:

• Durable Goods Orders: +0.8% (4x forecast), highest since November
• Ex-Transportation: +0.9%; Non-Defense ex-aircraft: +3.3% (six-year high)
• Housing Starts: 1.502M units (highest since December 2024)
• Building Permits: 1.372M units (lowest since August)
• Advanced Trade Deficit: -$87.9B
• Wholesale Inventories: +1.4%

AI equipment spending surged +3.7%, demonstrating tangible results from Big Tech infrastructure investments.

Market Context

Geopolitical tensions persist with ongoing negotiations, while Brent crude trades at $115/barrel.