Dow futures are showing an upward trend in anticipation of a series of potentially significant market events, which include a decision on interest rates by the Federal Reserve, the release of economic data, and new earnings reports from key corporations. The Federal Reserve is anticipated to maintain its current interest rate levels, even in the face of increasing demands from President Donald Trump to swiftly reduce borrowing expenses. Meanwhile, results are due out from “Magnificent Seven” companies Meta Platforms and Microsoft, with investors likely to focus in on their respective artificial intelligence ambitions.

Dow futures indicated an upward trajectory on Wednesday, as investors braced for a crucial series of central bank decisions and significant corporate earnings reports. The Dow futures contract exhibited minimal movement, while the S&P 500 recorded an increase of 6 points, translating to a 0.1% rise, and the Nasdaq 100 futures experienced an uptick of 47 points, or 0.2%. The primary indices experienced a decline on Tuesday, as the benchmark S&P 500 and the technology-focused Nasdaq Composite retreated from their recent peak levels. Drugmaker Merck, health insurer UnitedHealth, and jetmaker Boeing were among some of the Dow components to fall after unveiling their latest quarterly results. United Parcel Service also tumbled by more than 10%. The package deliverer has once more refrained from providing annual revenue and margin forecasts, intensifying concerns regarding the influence of frequently unpredictable U.S. trade policy on the group’s performance. Meanwhile, Procter & Gamble dropped on lower-than-anticipated annual guidance, while the consumer goods giant flagged that it will soon have to raise prices on some of its products to counterbalance the effect of tariffs. The levies also contributed to appliance maker Whirlpool’s decision to reduce its full-year outlook, resulting in a decline of over 13% in its shares.

A new series of trade discussions in Sweden involving the U.S. and China did not yield significant progress after two days of negotiations. Both parties characterized their discussions, aimed at alleviating potentially harmful tensions through an extension of their current 90-day trade truce, as constructive. U.S. Treasury Secretary Scott Bessent appeared to suggest that the continuation would not face rejection, stating to reporters following the meetings: “It’s just that we haven’t given the signoff.” U.S. officials indicated that the decision to prolong the truce, set to expire on August 12, ultimately rests with President Trump. Should he opt against pursuing an extension, U.S. duties on China may revert to triple-digit rates. Recent days have seen trade discussions take center stage within the Trump administration, particularly highlighted by the president securing a framework agreement with the European Union on Sunday. On Tuesday, Trump indicated that an agreement with India remains unfinalized following a report from Reuters, which stated that India is readying to accept increased tariffs ranging from 20% to 25% on its exports to the United States. Nonetheless, agreements with numerous other nations remain unfinalized, and the August 1 deadline for the implementation of Trump’s heightened “reciprocal” tariffs is now just days away.

The focus is now directed towards the Federal Reserve, which is broadly expected to maintain the current interest rates at the end of its upcoming two-day meeting on Wednesday. Numerous officials from the Federal Reserve have recently suggested that a more prudent strategy regarding forthcoming interest rate decisions is necessary, referencing the need to assess the effects of Trump’s assertive tariff policies on the broader economy. Concerns have emerged regarding the potential ramifications of the levies, especially their capacity to elevate inflation and exert pressure on overall economic growth. Price gains have thus far been relatively modest, and activity has shown resilience; however, concerns persist that businesses may increasingly transfer more costs to consumers in the months ahead. In light of current economic conditions, the Federal Reserve has chosen to maintain borrowing costs within the range of 4.25% to 4.5%. This position — along with Chair Jerome Powell’s public justification of it — has elicited criticism from Trump, who has urged the Fed to promptly lower rates to stimulate growth.

This week, additional data is expected to arrive, potentially offering deeper insights into the condition of the American economy. On Wednesday, market participants will have the opportunity to analyze the initial estimate of second-quarter gross domestic product. Economists project that the world’s largest economy will rebound to a growth rate of 2.5% in the April to June timeframe, subsequent to a contraction of 0.5% in the initial quarter. A monthly assessment of private payrolls is projected to increase by 77,000 in July, following a decline of 33,000 in the preceding month. The figures released by ADP will act as a precursor to the crucial nonfarm payrolls data scheduled for release on Friday. Market participants have been analyzing data indicating a rise in consumer confidence this month; however, a metric reflecting U.S. job openings and hiring has declined, implying a potential deceleration in the labor market.

On Wednesday, the earnings calendar will feature the initial results from prominent constituents of the “Magnificent Seven” cohort of large-cap technology stocks. Leading software corporation Microsoft’s artificial intelligence plans will be under heavy scrutiny, particularly after partner OpenAI recently utilized cloud services offered by rivals like Google, CoreWeave, and Oracle. OpenAI, the creator of ChatGPT, has significantly contributed to the expansion of Microsoft’s Azure cloud division, positioning the broader company as a key beneficiary in the surge of interest surrounding AI applications. The emerging technology is expected to occupy a prominent position in analysts’ considerations, particularly as they evaluate returns from Facebook’s parent company, Meta Platforms. CEO Mark Zuckerberg has identified substantial investment in AI as a cornerstone of the company’s future strategy, with plans to allocate approximately $55 billion towards the development of new AI data centers in the final three quarters of the 2025 calendar year. The strategies employed by Meta and Zuckerberg to derive revenue from these investments are of paramount interest to investors. Microsoft and Meta’s earnings after the bell are expected to be released alongside results from other companies, including chip designer Arm Holdings and trading platform Robinhood Markets.