This week’s market focus centers on the Federal Reserve interest rate decision, scheduled for Wednesday. Policymakers are expected to hold rates steady at 3.5%-3.75%, balancing a strong economy with persistent inflation. The meeting occurs as a criminal investigation into Chair Jerome Powell fuels concerns about the central bank’s independence, adding a layer of political tension to the monetary policy outlook.

Simultaneously, a wave of Big Tech earnings will test Wall Street’s patience for returns on massive AI investments. Companies like Microsoft, Apple, and Meta have spent heavily on data centers and chips, and investors now demand revenue growth to justify the outlays. Analysts will scrutinize whether these tech giants are finally delivering tangible results from their AI race spending.

Beyond tech, ASML reports its earnings, with its market value recently surpassing $500 billion on AI chip demand. Geopolitically, President Trump’s threat of a 100% tariff on Canadian goods if it strikes a trade deal with China adds another risk factor. While seen as unlikely to materialize, such threats continue to weigh on investor sentiment.