US stock market enters crucial week as Fed decision, big tech AI spending take center stage

The US stock market faces a big test this week. Four of the ‘Magnificent Seven’ companies are set to announce their earnings, with investor focus on AI infrastructure and capital expenditure plans.

The other big event arrives mid-week, when US Fed officials sit for a two-day FOMC meeting to decide on interest rates. Markets expect the US Fed to keep rates unchanged in the July FOMC, but they place a higher probability on a rate hike at the September meeting.