This week is packed with earnings from mega-cap tech companies—Apple, Amazon, Meta, and Microsoft—all of which have outsized influence over indices like the S&P 500 and Nasdaq. Their guidance and AI-related outlooks will be under intense scrutiny. Earnings so far have shown solid beats—but investors now expect strong future guidance, not just current performance. At the same time, economic data releases including Q2 GDP, July’s jobs report, PCE inflation, and consumer confidence stand to meaningfully shift market expectations. Analysts anticipate the Fed will keep interest rates steady, but how Powell frames future policy will be watched closely. Balancing Act: Risks & Sentiment Markets remain at record highs, but concerns about overvaluation are growing. The S&P 500 trades around 22× expected earnings, and any hiccup in earnings or guidance could stoke volatility. Investors are especially wary after a prolonged rally and stretched valuation levels. Trade and tariffs continue to be uncertainty points.