Stocks at Records Ahead of Big Week of Fed & Tech. What to Watch

Record highs, rate-cut optimism, five tech giants on deck — what a time to be a market participant!

It’s Monday, and Wall Street is back doing what it does best — setting new records and pretending not to worry about what comes next.

After a cooler-than-expected inflation print and some diplomatic smiles from Washington and Beijing, all three major indexes are kicking off the week in full throttle.

Last Friday, the Dow Jones Industrial Average DJI finally closed north of 47,000 for the first time ever, rising 472 points, or 1%.

You know that feeling when you hit every green light on the way to work? That’s what Friday felt like. The S&P 500 SPX climbed 0.8%, and the Nasdaq Composite IXIC gained 1.2%. Together, the trio ended the week at record highs.

The spark? September’s Consumer Price Index USCPI rose 3.0%, slightly below the 3.1% expected. Traders took that as a nod from the economy that the Federal Reserve can keep easing off the monetary brakes.

Odds of at least a half-point in rate cuts by year-end jumped to nearly 97%, according to the CME FedWatch Tool.

Soft inflation, strong sentiment, and new highs — *insert feelsgoodman meme.*

🤝 A Trade Truce (For Now)

Adding to optimism, US and Chinese negotiators sounded unusually positive over the weekend. The two sides reportedly hammered out a trade framework, setting the stage for President Donald Trump and Chinese leader Xi Jinping to meet in South Korea later this week.

Treasury Secretary Scott Bessent said the talks “ought to pave the way” for a broader discussion on tariffs, tech transfers, and everything in between — the kind of vague optimism that markets eat up like comfort food.

For now, investors are choosing to focus on the handshake rather than the fine print. After all, in the markets, hope is often more powerful than details.

🏦 The Fed’s Big Moment

The main event, however, comes midweek. The Federal Reserve is widely expected to cut interest rates USINTR by a quarter point on Wednesday. But the real show starts after the decision, when Jerome Powell takes the mic.

Traders will be parsing every word of his press conference for hints on how much further the Fed is willing to go. The tone of his remarks could determine whether markets keep coasting at record highs — or finally take a breather.

So far, Powell has managed to thread the needle: easing just enough to keep growth alive without letting inflation flare back up. But with stocks at all-time highs and job data still missing due to the government shutdown, he’s got a tough balancing act.

💻 Big Tech Takes the Stage

Anyway, peak earnings season is here and if macro policy is the first act this week, Big Tech earnings are the broader narrative.

Five members of the Magnificent Seven — Microsoft MSFT, Alphabet GOOGL, Meta META, Apple AAPL, and Amazon AMZN — will all report their latest results.

That’s roughly $12 trillion in combined market cap stepping into the spotlight.

After a few solid years of sky-high expectations around AI, cloud, and advertising recovery, investors are craving proof that the hype is translating into actual earnings.

The question isn’t whether these companies are still dominant — it’s whether they can keep growing fast enough to justify valuations that have already priced in perfection.

Microsoft, Meta and Alphabet kick things off Wednesday, Apple and Amazon step up Thursday. Somewhere between all that, expect social media feeds to explode with charts, hot takes, and the occasional meme about “buying the dip” before it even happens.

🌍 Markets in a Mood

It’s one of those rare weeks when every major force — central banks, geopolitics, and tech earnings — converge into a single market narrative. And, by the looks of it, that narrative is leaning bullish.

Still, keep an eye out for surprises.

Off to you: Where do you think markets are heading this week? Are you excited to snap up some tech shares ahead of the updates or looking to play defense? Share your thoughts in the comments!