Will the Earnings of Seven US Tech Giants and the Fed Meeting Mark a Turning Point for the Market?

The Rush of Earnings Reports from Seven US Tech Giants and the Fed Meeting: The Essence of the “Rebound Testing Week”

April 26, 2026 – For technology investors, an intense week with little room to breathe is about to begin. Apple, Microsoft, Alphabet (Google), Amazon, Meta, NVIDIA, and Tesla—collectively referred to as the “FAANG Plus” companies—will sequentially release their quarterly earnings. Adding to the intensity, the Federal Reserve (Fed) will hold its monetary policy meeting during the same week. Among market participants, next week is being widely seen as a litmus test for the sustainability of the current rebound trend, which has followed a sharp upward movement in a short period.

A Surge of Over 13%: What’s Happening?

The U.S. stock market has witnessed remarkable performance this past month. The market initially declined due to concerns over the worsening situation in the Middle East but rebounded sharply following news of a ceasefire agreement. From March 30, the S&P 500 index has surged by approximately 13%, while the tech-heavy NASDAQ Composite Index has climbed by over 19%, both reaching all-time highs.

This rapid surge can be attributed to a combination of easing geopolitical risks and a reassessment of overly pessimistic market sentiment toward tech companies. In particular, a renewed evaluation of long-term growth prospects tied to AI investments has driven the semiconductor sector, led by NVIDIA.

Anthony Saglimbene, Chief Market Strategist at Ameriprise, warns, “The market has experienced significant gains in a short period. Next week will be a crucial week to determine if this rebound can hold.” Indeed, April’s rapid rise in stock prices resulted from a confluence of bargain-hunting after the market correction that began at the end of 2025 and portfolio adjustments by institutional investors. However, given the speed of the rally, there’s a risk of profit-taking unless strong supporting factors emerge to sustain the upward momentum.

Tech Giants’ Earnings to Reveal the Current State of the “AI Economy”

The unquestionable focal point of next week will be the earnings reports from the seven tech giants. What the market is particularly watching is whether investments in AI are genuinely translating into revenue. Since 2025, the “AI infrastructure investment boom” has been ongoing, and investors are eager to see how this is reflected in these companies’ cloud businesses, advertising revenues, and hardware sales.

For instance, NVIDIA is expected to continue benefiting from strong demand for GPUs used in AI applications. However, competition is intensifying with AMD and Google, which is advancing its own custom chip development. Microsoft and Google are likely to focus on the growth rates of their cloud services, Azure and Google Cloud, driven by AI integration. Amazon is expected to highlight how AI is improving logistics efficiency and expanding advertising revenues within its dual focus on e-commerce and AWS. Meta faces the challenge of optimizing ad targeting through AI and monetizing its investments in VR/AR. Meanwhile, Apple is under pressure to see if it can offset slowing iPhone sales with AI features, and Tesla must demonstrate progress in autonomous driving technology amidst intensifying price competition in the EV market.

The Fed Meeting: Focus on Powell’s Potential Final Address

Alongside the tech earnings, the Fed’s monetary policy meeting is also keeping the market on edge. While it’s highly likely that the Fed will hold off on raising interest rates at this meeting, all eyes will be on Federal Reserve Chairman Jerome Powell’s press conference. With Powell’s term set to expire in the summer of 2026, this may be his final meeting as Fed Chair. The market will be closely analyzing his final message regarding future rate-cut scenarios and the ongoing battle against inflation.

Uncertainty in monetary policy is particularly impactful on tech stocks, which are highly sensitive to interest rates. Should Powell adopt a hawkish tone, stating that rate cuts are still a long way off, it could dampen the market’s recent momentum. Conversely, if he expresses confidence in controlling inflation, it could further boost risk appetite.

Middle East Risks Continue to Loom: Implications of a Canceled Peace Negotiation

Another reason the market cannot afford to be overly optimistic is the ongoing uncertainty in the Middle East. President Trump abruptly canceled a planned envoy visit aimed at direct negotiations with Iran. Should the peace process stall, it could lead to a rebound in oil prices and a resurgence of geopolitical risks, potentially wiping out the recent market gains.

Sid Vaidya, Chief Investment Strategist at TD Wealth, highlights, “The risk of a renewed escalation in the Middle East conflict could heighten market volatility.” Even if tech companies report strong earnings, a deteriorating macroeconomic environment could render stock price gains short-lived.

Insights for Investors: Diversification and Patience Are Key

Next week could very well prove to be a “turning point” for short-term market direction. Should the tech giants’ earnings exceed expectations, it would reaffirm the sustainability of the AI boom and accelerate the upward trend. On the other hand, misses in expectations or hawkish comments from the Fed could mark a turning point toward a correction phase.

For investors, the key takeaway is that during this “post-surge assessment period,” careful stock selection is crucial. Diversifying investments beyond high-growth AI-related stocks to include financially stable companies can help manage risks in a highly volatile market. Additionally, rather than reacting emotionally to short-term price fluctuations, investors should maintain a long-term perspective on structural changes in the tech industry, such as AI, cloud computing, and autonomous driving.

The market next week will serve as a battleground between the “strength” of tech companies and the “external factors” of monetary policy and geopolitical risk. The outcome will likely have a significant impact on investment strategies for the latter half of 2026.

FAQ

Q: Why are next week’s tech earnings considered so important?
A: The results will provide the first concrete evidence of the returns from the AI investment boom that began in 2025. If the impact of AI on cloud services, advertising revenues, and other areas is evident, investor expectations could rise further. On the other hand, if the returns on AI investments remain unclear, concerns about an AI bubble could resurface.

Q: How will the Fed meeting outcome affect tech stocks?
A: Interest rate policies directly impact tech stocks. If rate hikes are hinted at, it could lead to concerns over higher future funding costs and trigger selling. Conversely, a signal of potential rate cuts could create a favorable environment for buying growth-oriented tech stocks. Powell’s comments will be key in shaping market direction.

Q: Will the worsening Middle East situation directly impact tech earnings?
A: The direct impact might be limited, but the indirect effects could be significant. Rising oil prices could fuel inflation, increasing pressure on the Fed to raise rates. Additionally, heightened geopolitical risks may cause investors to move funds from high-risk tech stocks to safer assets.