S&P 500 Enters Peak Earnings Week as Alphabet's AI Spending Concerns Loom

SPX500-0.64%
MSFT2.58%
AMZN-0.10%
META0.31%
V2.07%
This week (July 27-31), roughly one-third of S&P 500 constituents report second-quarter earnings, marking the busiest week of earnings season. Alphabet's recent results sparked selloffs after the company disclosed accelerated AI spending plans, casting doubt on whether major tech giants can recoup massive infrastructure investments. Key names reporting this week include Apple, Microsoft, Amazon, Meta, Visa, Chevron, and Coca-Cola. According to LSEG IBES, S&P 500 second-quarter profits are expected to grow 26.5% year-over-year, with AI spending continuing to drive 2026 stock performance. Meanwhile, the Federal Reserve meets Wednesday with market consensus expecting rates unchanged, though futures show a 38% probability of a 25-basis-point hike.
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