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NEWS
Setting Up For A Wild Wednesday

Today’s action was the inverse of yesterday's, with AI-related stocks in the green and everything else experiencing selling. A Fed cut is not expected tomorrow, but investors will closely analyze the commentary to identify how Powell and the FOMC attempt to handle Trump’s pressures for lower rates. Speaking of commentary, “Mag 7” earnings kick off tomorrow after the bell with Tesla, Meta, and Microsoft, and we’re all anxiously awaiting perspective on the DeepSeek AI development. 👀 

Today's issue covers tomorrow’s Fed expectations, what Starbucks shares have brewing, a special “Trends With Friends” episode, and more from the day. 📰

Here’s the S&P 500 heatmap. 3 of 11 sectors closed green, with technology (+2.67%) leading and consumer staples (-1.56%) lagging.

And here are the closing prices: 

EARNINGS
Retail’s Fed & Magnificent 7 Expectations 🌡️ 

As noted in the intro, tomorrow is a big day for the markets, so let’s quickly review retail’s expectations for the Fed meeting and Mag 7 earnings. 👇️ 

Starting with the Fed, futures markets indicate a 98% probability of rates staying where they are. And after the last set of economic projections, many aren’t expecting a cut until at least the second quarter.

While the actual rate decision is priced in, Jerome Powell’s commentary is not. Trump recently indicated he wanted interest rates in the U.S. to fall, signaling some potential pressure on the Fed to make a move. However, when Powell was asked about a potential clash with Trump in November, he indicated he would not resign nor bow to any pressures from the President. 😤 

With Trump now officially in office, we’ll see if the Fed’s perspective has shifted at all and how they plan to navigate the many fiscal policies that will make managing the economy all that much more difficult.

Moving onto earnings, a Stocktwits poll indicates that more than half the 6,800 active investors who voted believe the “Magnificent Seven” is set to report strong growth and continue its dominance this earnings season. 🤔 

With Meta trading near all-time highs and Microsoft and Tesla not far off theirs, expectations are certainly high for these stocks. We’ll have to wait and see if they can deliver the optimistic views Netflix, the banks, and others have. 🤷 

Remember to tune into all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! Or, simply add a stock to your watchlist to be notified when the call is live! Either way, we’ll see you there. 👍

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