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Global Week Ahead: First Fed Meeting of 2026 & Q4 Mag 7 Results Begin
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Key Takeaways
Mag 7 Members, Including MSFT, AAPL & Others, Report Earnings This Week
The First FOMC Meeting of 2026 Takes Place Tuesday and Wednesday
Japan's Yen Valuation Captures Some of This Week's Spotlight
Zacks Equity Strategist Shaun Pruitt here, filling in for John Blank.
In the global week ahead, Mag 7 Q4 results start rolling in as markets also anticipate the first Fed meeting of 2026, along with Japan’s “snap election.” The yen continues to lose power against the U.S dollar, leading to a more unstable bond market.
Central bank meetings from emerging markets will also be of interest, as well as updates on the power struggle for Greenland.
At the end of the week, we will also receive initial jobless claims and producer price index (PPI) data in the U.S.
Reuters' five world market themes, reordered for equity traders:
(1) First Fed Meeting of 2026
The Federal Reserve holds its latest interest rate-setting meeting and, with Fed Chair Jerome Powell & Co. widely expected to hold rates steady on Wednesday, focus will be just as much on the threats to the U.S. central bank's cherished independence.
Investors will still be watching for signals when rates might move, of course, but this will be the first time Powell holds a Fed press conference since this month's revelations that the Trump administration had launched an investigation into his multi-billion-dollar refurbishment of the Fed's headquarters.
Powell has slammed the move as a "pretext" to try to gain more influence over interest rates. It also adds to the other two key subplots in the independence row: the U.S. Supreme Court's case over Trump's bid to fire governor Lisa Cook and his still-to-be-announced decision on who takes over from Powell as Fed Chief in May.
(2) Mag 7 Q4 Results
Four out of the seven so-called "Magnificent Seven" U.S. tech giants report earnings this week — Microsoft (MSFT - Free Report) , Apple (AAPL - Free Report) , Facebook parent Meta (META - Free Report) , Elon Musk's Tesla (TSLA - Free Report) — as does South Korea's Samsung.
The key for many will be to what extent their massive spending — funded increasingly by debt, in some cases — on the global AI arms race is paying off.
It is no longer enough just to beat forecasts. Companies have to smash them out of the ground and offer racy enough guidance that make investors feel comfortable about their stratospheric valuations.
The geopolitical ructions of the last couple of weeks aside, it's pockets of the market beyond AI that are performing most strongly right now. The “Magnificent Seven” may find that shareholders who have become accustomed to blockbuster results want even more “magnificence.”
(3) Yen Concerns
Campaigning will be heating up in Japan ahead of the snap February 8 election that Prime Minister Sanae Takaichi has called in a bid to tighten her grip on the ruling Liberal Democratic Party.
Takaichi's pledges to boost spending and suspend the country's food sales tax for two years have been pummellling the yen and Japanese government bonds, so much so that Finance Minister Satsuki Katayama had to call for calm last week, while the Bank of Japan deployed some interest rate hints.
Analysts worry the yen has become unmoored from its traditional anchor — the gap between Japanese and U.S. long-term interest rates — and that, alongside the erratic bond market behavior, shows that investors are now sweating over the country's 221% debt-to-GDP ratio.
(4) Central Bank Meetings from Emerging Markets
There's a smorgasbord of emerging market central banks meeting, and though there will not be many immediate movements, there will be plenty of signals to scan as the hot streak for EM currencies, debt and stocks rumbles on.
Heavyweight Brazil is widely expected to keep its rates unchanged at 15% again, but may well hint at a cut. Chile is expected to be a near-carbon copy with its 4.5% rates. Hungary should stick at 6.5% as its crucial election draws closer. South Africa is tipped to stay at 6.75% due to high electricity inflation, although a cut has not been completely dismissed.
It will not all be sideways, though. Colombia is expected to cut its rates between a quarter and a half point, despite recent wage increases, and Ghana is slashing its rate by 300 basis points after having seen its currency, the cedi, begin to wobble after its gold-linked rush over the last year.
(5) Greenland Stabilization
With U.S. President Donald Trump, Europe and NATO stepping back from their icy precipice over Greenland, markets — with the notable exception of the gold bugs and weapons firms — will be hoping the tensions continue to melt away.
For that, they will want to see more tangible details about the “framework deal” the sides have struck, and for the crisis to stay safely out of Trump's social media feed.
It could help bring world stock markets back to record highs and tap the brakes on gold's seemingly unstoppable rush which has now powered past $5,000 an ounce. That said, given the way this year has started, this might just make way for another geopolitical flashpoint.
Key Global Macro Events
On Monday, Durable Goods Orders for November (delayed due to the government shutdown) outperformed expectations: +5.3% versus a +4.5% consensus, the strongest monthly print in six months.
On Tuesday, the Consumer Confidence report comes out.
On Wednesday, the FOMC interest-rate decision looms with Fed Chair Jerome Powell holding a press conference at 2:30 PM EST.
On Thursday, initial jobless claims come out and are expected to have slightly decreased from 209,000 to 200,000. The market will also receive the U.S. trade deficit report, and revised U.S. productivity data, along with Wholesale inventories and Factory orders.
On Friday, Producer Price Index data will be received (PPI), with St. Louis Fed President Alberto Musalem and Fed Vice Chair for Supervision Michelle Bowman expected to speak at 1:30 PM EST and 5 PM, respectively.
Top Zacks Rank #1 (STRONG BUY) Stocks
Nvidia (NVDA - Free Report) : This is a $187 a share stock, with a market cap of $4.5T. It is found in the Zacks Semiconductor-General Industry. There is a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of D.
Citigroup (C - Free Report) : This is a $113 a share stock, with a market cap of $203.24B. It is found in the Zacks Financial-Investment Bank Industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of D.
AngloGold Ashanti (AU - Free Report) : This is a $106 a share stock, with a market cap of $44.6B. It is found in the Zacks Mining-Gold Industry. There is a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of A.
Conclusion & Q4 Key Points
Let’s conclude with some updated key points from Zacks Research Director Sheraz Mian as the Q4 earnings season progresses:
“The Q4 earnings reporting cycle ramps up this week, with more than 300 companies on deck to report results, including four of the ‘Magnificent 7’ members and 102 S&P 500 members. We have Microsoft, Meta and Tesla reporting results the same day after the market’s close on Wednesday, January 28th, and Apple on Thursday, January 29th, after the market’s close.
“Through Friday, January 23rd, we have seen Q4 results from 64 S&P 500 members. Total earnings for these companies are up +17.5% from the same period last year on +7.8% higher revenues, with 82.8% beating EPS estimates and 68.8% beating revenue estimates.
“As noted earlier, we have 102 index members reporting results this week. The week’s line-up includes, besides the aforementioned Mag 7 members, a representative cross-section of bellwether operators, including UPS, Boeing, GM, Starbucks, AT&T, IBM, Visa and Mastercard, Caterpillar, Comcast, American Express, Exxon, Chevron, and others.”
Enjoy an exciting trading week!
Kind Regards,
Shaun Pruitt Zacks Equity Strategist
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Global Week Ahead: First Fed Meeting of 2026 & Q4 Mag 7 Results Begin
Key Takeaways
Zacks Equity Strategist Shaun Pruitt here, filling in for John Blank.
In the global week ahead, Mag 7 Q4 results start rolling in as markets also anticipate the first Fed meeting of 2026, along with Japan’s “snap election.” The yen continues to lose power against the U.S dollar, leading to a more unstable bond market.
Central bank meetings from emerging markets will also be of interest, as well as updates on the power struggle for Greenland.
At the end of the week, we will also receive initial jobless claims and producer price index (PPI) data in the U.S.
Reuters' five world market themes, reordered for equity traders:
(1) First Fed Meeting of 2026
The Federal Reserve holds its latest interest rate-setting meeting and, with Fed Chair Jerome Powell & Co. widely expected to hold rates steady on Wednesday, focus will be just as much on the threats to the U.S. central bank's cherished independence.
Investors will still be watching for signals when rates might move, of course, but this will be the first time Powell holds a Fed press conference since this month's revelations that the Trump administration had launched an investigation into his multi-billion-dollar refurbishment of the Fed's headquarters.
Powell has slammed the move as a "pretext" to try to gain more influence over interest rates. It also adds to the other two key subplots in the independence row: the U.S. Supreme Court's case over Trump's bid to fire governor Lisa Cook and his still-to-be-announced decision on who takes over from Powell as Fed Chief in May.
(2) Mag 7 Q4 Results
Four out of the seven so-called "Magnificent Seven" U.S. tech giants report earnings this week — Microsoft (MSFT - Free Report) , Apple (AAPL - Free Report) , Facebook parent Meta (META - Free Report) , Elon Musk's Tesla (TSLA - Free Report) — as does South Korea's Samsung.
The key for many will be to what extent their massive spending — funded increasingly by debt, in some cases — on the global AI arms race is paying off.
It is no longer enough just to beat forecasts. Companies have to smash them out of the ground and offer racy enough guidance that make investors feel comfortable about their stratospheric valuations.
The geopolitical ructions of the last couple of weeks aside, it's pockets of the market beyond AI that are performing most strongly right now. The “Magnificent Seven” may find that shareholders who have become accustomed to blockbuster results want even more “magnificence.”
(3) Yen Concerns
Campaigning will be heating up in Japan ahead of the snap February 8 election that Prime Minister Sanae Takaichi has called in a bid to tighten her grip on the ruling Liberal Democratic Party.
Takaichi's pledges to boost spending and suspend the country's food sales tax for two years have been pummellling the yen and Japanese government bonds, so much so that Finance Minister Satsuki Katayama had to call for calm last week, while the Bank of Japan deployed some interest rate hints.
Analysts worry the yen has become unmoored from its traditional anchor — the gap between Japanese and U.S. long-term interest rates — and that, alongside the erratic bond market behavior, shows that investors are now sweating over the country's 221% debt-to-GDP ratio.
(4) Central Bank Meetings from Emerging Markets
There's a smorgasbord of emerging market central banks meeting, and though there will not be many immediate movements, there will be plenty of signals to scan as the hot streak for EM currencies, debt and stocks rumbles on.
Heavyweight Brazil is widely expected to keep its rates unchanged at 15% again, but may well hint at a cut. Chile is expected to be a near-carbon copy with its 4.5% rates. Hungary should stick at 6.5% as its crucial election draws closer. South Africa is tipped to stay at 6.75% due to high electricity inflation, although a cut has not been completely dismissed.
It will not all be sideways, though. Colombia is expected to cut its rates between a quarter and a half point, despite recent wage increases, and Ghana is slashing its rate by 300 basis points after having seen its currency, the cedi, begin to wobble after its gold-linked rush over the last year.
(5) Greenland Stabilization
With U.S. President Donald Trump, Europe and NATO stepping back from their icy precipice over Greenland, markets — with the notable exception of the gold bugs and weapons firms — will be hoping the tensions continue to melt away.
For that, they will want to see more tangible details about the “framework deal” the sides have struck, and for the crisis to stay safely out of Trump's social media feed.
It could help bring world stock markets back to record highs and tap the brakes on gold's seemingly unstoppable rush which has now powered past $5,000 an ounce. That said, given the way this year has started, this might just make way for another geopolitical flashpoint.
Key Global Macro Events
On Monday, Durable Goods Orders for November (delayed due to the government shutdown) outperformed expectations: +5.3% versus a +4.5% consensus, the strongest monthly print in six months.
On Tuesday, the Consumer Confidence report comes out.
On Wednesday, the FOMC interest-rate decision looms with Fed Chair Jerome Powell holding a press conference at 2:30 PM EST.
On Thursday, initial jobless claims come out and are expected to have slightly decreased from 209,000 to 200,000. The market will also receive the U.S. trade deficit report, and revised U.S. productivity data, along with Wholesale inventories and Factory orders.
On Friday, Producer Price Index data will be received (PPI), with St. Louis Fed President Alberto Musalem and Fed Vice Chair for Supervision Michelle Bowman expected to speak at 1:30 PM EST and 5 PM, respectively.
Top Zacks Rank #1 (STRONG BUY) Stocks
Nvidia (NVDA - Free Report) : This is a $187 a share stock, with a market cap of $4.5T. It is found in the Zacks Semiconductor-General Industry. There is a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of D.
Citigroup (C - Free Report) : This is a $113 a share stock, with a market cap of $203.24B. It is found in the Zacks Financial-Investment Bank Industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of D.
AngloGold Ashanti (AU - Free Report) : This is a $106 a share stock, with a market cap of $44.6B. It is found in the Zacks Mining-Gold Industry. There is a Zacks Value score of C, a Zacks Growth score of A, and a Zacks Momentum score of A.
Conclusion & Q4 Key Points
Let’s conclude with some updated key points from Zacks Research Director Sheraz Mian as the Q4 earnings season progresses:
“The Q4 earnings reporting cycle ramps up this week, with more than 300 companies on deck to report results, including four of the ‘Magnificent 7’ members and 102 S&P 500 members. We have Microsoft, Meta and Tesla reporting results the same day after the market’s close on Wednesday, January 28th, and Apple on Thursday, January 29th, after the market’s close.
“Through Friday, January 23rd, we have seen Q4 results from 64 S&P 500 members. Total earnings for these companies are up +17.5% from the same period last year on +7.8% higher revenues, with 82.8% beating EPS estimates and 68.8% beating revenue estimates.
“As noted earlier, we have 102 index members reporting results this week. The week’s line-up includes, besides the aforementioned Mag 7 members, a representative cross-section of bellwether operators, including UPS, Boeing, GM, Starbucks, AT&T, IBM, Visa and Mastercard, Caterpillar, Comcast, American Express, Exxon, Chevron, and others.”
Enjoy an exciting trading week!
Kind Regards,
Shaun Pruitt
Zacks Equity Strategist