Wall Street Week Ahead: With Fed mum on next move, investors look to earnings

According to Business Recorder, investors heading into the coming week are weighing interest rates, inflation and geopolitical tensions against a strong earnings season that has kept equities buoyant. With the US Federal Reserve offering little fresh direction, many are turning to company results for reassurance, especially those linked to spending on AI infrastructure. Shawn Snyder of Potomac Fund Management views the August 27 to 29 Jackson Hole symposium as the next chance for policymakers to clarify their view of inflation and growth.

Technology shares rose and oil prices eased after a US producer price figure came in below forecasts, lifting the S&P 500 to a record on Thursday. Treasury yields slipped as traders scaled back wagers on a rate increase next month. Even so, participants remain watchful for any sign that inflation could pick up again, with energy costs elevated and US-Iran talks stalled.

According to LSEG data, about 85 percent of reporting S&P 500 companies have topped profit estimates, and profits rose 32.7 percent after stripping out mark-to-market gains booked by Alphabet and Amazon. Big Tech AI spending is on course to exceed USD700 billion this year, up from USD400 billion in 2025, a development that has prompted questions about returns on that spending. Upcoming results from Walmart and Analog Devices are expected to shed light on the US consumer and the wider economy.