The US stock market could be in for a riveting week amid multiple household names reporting.
Analysts at ANZ Group Holdings Ltd (ASX: ANZ) are tipping the US Fed to raise rates at a meeting later this week.
The S&P 500 Index (SP: .INX) slid 1.3% overnight, the Dow Jones Industrial Average (DJX: .DJI)slipped 0.77% and the Nasdaq Composite Index (NASDAQ: .IXIC) slipped 1.96% on Monday, US time.
What's ahead?
ANZ highlighted it is a "big week for both central banks and US equities" in a research report released this morning.
Among the US stocks due to report earnings are Apple Inc (NASDAQ: AAPL), Meta Platforms Inc (NASDAQ: META), Caterpillar Inc (NYSE: CAT), McDonald's Corp (NYSE: MCD), General Motors Company (NYSE: GM), United Parcel Service Inc (NYSE: UPS) and Alphabet Inc Class A (NASDAQ: GOOGL).
ANZ senior economist Felicity Emmett said these earnings announcements will provide a "micro overview of the macro economy". She added:
Investors bought into the 'soft landing' view in early 2023, despite the prospect of what could still be a bumpy ride for activity as the lagged effects of last year's interest rates front-loading and still-high inflation bite.
Meanwhile, the United States Federal Open Market Committee (FOMC) is due to announce an interest rate decision on Thursday morning, Sydney time. ANZ is forecasting a 0.25% rate rise.
Commenting on this outlook, ANZ's Emmett said:
We expect a 25bp rate rise and anticipate that the Fed will caution against an early pause in the tightening cycle and certainly give the notion of cuts no rein.
Risk appetite could be vulnerable to a correction.
US stock market snapshot
Meta shares fell 3% on Monday and have shed 53% in the last year.
Apple Inc (NASDAQ: AAPL) shares lost 2% on Monday and have slid 18% in the last year.
Alphabet shares slid 2.74% on Monday and have tumbled 28% in the past year.
McDonalds shares dropped 0.58% on Monday but have climbed 4.41% in the last 52 weeks.
General Motors shares shed 4.37% on Monday and have slumped 31% in the last year.
Caterpillar shares fell 1.11% on Monday but have soared 29.74% in the past year.
The United Parcel Service share price lost 2.81% on Monday and has slid 12.48% in the last year.
Meanwhile, the S&P 500 Index has shed 11% in the last year, while the Dow Jones has lost 4% in a year and the Nasdaq Composite has shed nearly 20% in the past 12 months.
