Big Tech, Big Week

In this buzz: Satya Nadella and Sam Altman; Fed; Tech Earnings and more…

Fed, inflations and interest rates:
This week brings the first Fed meeting of the year on Tuesday and Wednesday. It’s widely anticipated that J.P and the FOMC(Federal Open Market Committee) will raise rates 25 basis points at this meeting and the next. With cooling inflation, tech layoffs and the prospects of a recession looming, what happens after that is tbd.
While many aren’t convinced that the Fed is finished fighting inflation, there are analysts who believe the FOMC may be on track to deliver the ever so elusive Goldilocks, soft-landing scenario, beating inflation while avoiding a recession. There are even some people on the street who think, and hear me out, that the Fed could cut rates this year! It’s not historically likely but stranger things have happened.

Big Tech earnings:
In addition to the Fed meeting, it’s another big week for earnings. While a variety of companies across industries will be reporting, it’s big tech that will capture the most attention. Given
– the layoffs in the sector,
– coupled with ad business threats,
– Google’s potential challenges squaring off against ChatGPT and supply chain and consumer concerns, every announcement this week will face strict scrutiny.