Why Stocks Dropped/What the Fed Decision Means for Markets
What’s in Today’s Report:
- Why Stocks Dropped/What the Fed Decision Means for Markets
Futures are bouncing modestly on solid MSFT earnings and on a slight decline in oil prices.
Microsoft posted strong earnings and guidance (MSFT up 10% pre-market) and that’s helping to stabilize broader tech this morning.
Geopolitically, the U.S. struck Iran overnight but didn’t signal dramatic escalation so oil prices are down 1%.
Today is another busy day in the market with potentially important updates from economic data, geopolitics and earnings.
Economically, the key report is the Core PCE Price Index (E: 0.2% m/m, 3.3% y/y) and if that’s a “hot” number we’ll see yields rise further and pressure stocks. Other notable economic data today includes Advanced Q2 GDP (E: 2.3%) and Jobless Claims (E: 205K),.
On earnings, we get two more major tech names reporting via AAPL ($1.88) and AMZN ($1.82) while MA ($4.77) will give us insight into consumer spending. Across the board, the better the earnings, the better for markets.
Finally, on geopolitics, any hint of ceasefire progress should pressure oil prices which would be a general positive for markets.
Today’s Alpha Webinar: Updating the Bullish/Bearish Setup for this Market
Markets are at an important inflection point. AI leadership is being questioned, the Fed’s path into 2026 remains uncertain, inflation data continues to surprise, and earnings season is testing investor confidence.
The key question is whether this recent pullback is simply a healthy pause within an ongoing bull market or the beginning of a more meaningful shift in trend.
In this afternoon’s Alpha webinar (1:30 p.m. ET), we’ll connect these developments into a clear bullish and bearish framework, explain what we’re watching most closely, and discuss the implications for portfolio positioning and client conversations.
If you’re looking for a deeper analysis beyond the daily Sevens Report—including actionable investment ideas, client-ready slide decks, and timely thematic research—click below to learn more about Alpha and join us live this afternoon.