Tech Giants and Fed Decision Set Up Volatile Week for Global Markets

Global financial markets are bracing for a volatile week as major US technology companies and the Federal Reserve prepare to release key data. From July 27 to July 31, tech giants like Microsoft, Meta Platforms, and Amazon.com will report second-quarter earnings, focusing on capital expenditure plans, AI infrastructure spending, and changes in free cash flow.

Alphabet's recent results have set a precedent, with the company beating market expectations but posting negative free cash flow for the first time due to increased AI investment. This development has made the impact of heavy AI spending a key variable in this earnings season.

The Federal Reserve will hold its FOMC meeting on July 28-29 to determine benchmark interest rates, with markets pricing in a high probability that rates will remain unchanged. Fed Chair Kevin Warsh's press conference on July 30 in Korea will be closely watched for signals on future rate cuts and the central bank's response to inflation pressures.

The Middle East situation is also being monitored, as tensions between Saudi Arabia and Houthi rebels could escalate, putting pressure on international oil prices. This could weigh on sentiment toward risk assets.