5 Key Developments to Follow Next Week

Here are 5 key developments to follow next week. It will be a busy week with the Fed meeting, high-profile earnings reports and key economic data.

Here are 5 important developments you should know before starting the new week:

1.FED (US Federal Reserve) Meeting

The Fed begins its two-day meeting on Wednesday, and the bank's statement will be watched closely to see if there are any details about when it will reduce its asset purchase program. On the other hand, Chairman Jerome Powell made it clear in his last presentation to Congress that the US economy continues to need the full support of the central bank. Powell may send the message that although reduction discussions have begun, there is still time for the authorities to reach a conclusion. Politicians are expected to draw attention to the risks associated with the rapidly spreading Delta variant. Investors are also concerned that this variant will hinder the recovery in the economy.

2.Macro Data

New housing sales, which are thought to have registered new highs, will be released on Monday, and durable goods orders on Tuesday, as well as consumer confidence data. Thursday's highlight will be a first look at the second-quarter GDP reading. Although expectations are for a decrease in recent weeks, a strong growth rate of 8.6 percent is still expected. If this happens, it will be understood that the post-pandemic recovery may have peaked and all the production loss caused by the pandemic has been compensated.

3.Earnings Reports

Earnings from Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) on Tuesday, Facebook (NASDAQ:FB) on Wednesday and Amazon (NASDAQ:AMZN) on Thursday could accelerate the move into growth stocks. FAANG stocks - Facebook, Amazon, Apple, Netflix (NASDAQ:NFLX) and Google's parent company Alphabet - are generally known for offering massive stock market revenue. But so far only Facebook and Alphabet have surpassed S&P 500 estimates so far this year as investors pour into the stocks of finance, energy and other companies benefiting from the post-pandemic economic recovery. Other key names to report include Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA), Boeing (NYSE:BA), Caterpillar (NYSE:CAT), Pfizer (NYSE:PFE), Procter & Gamble (NYSE:PG) and McDonald's (NYSE:MCD).

4.Market Concerns

Growth and equity shares were down for most of the past week, amid investors' optimistic earnings results and increased Delta variant concerns over economic data. All three major US indices closed on Friday with a record: Dow closed above 35,000 for the first time ever, following a volatile week of increased and decreased risk appetite. On Monday, the S&P 500 showed its biggest single-day drop since May before hitting its biggest single-day jump since March.

5.Eurozone Second Quarter Data

The eurozone's second-quarter GDP data, which will be released on Friday, will paint a picture of the extent to which the bloc's economy is recovering from a double-dip recession as vaccination increases. On the other hand, inflation figures to be shared on the same day are expected to meet the 2 percent target of the European Central Bank (ECB). The ECB had said it would allow the inflation target to be temporarily exceeded if "especially strong or durable" monetary support was needed.       Source: Investing.com