Investors are gearing up for one of the most eventful weeks of the summer, with futures ticking lower ahead of the busy slate. At the time of writing, Dow futures are
off 0.5%, while contracts linked to the S&P 500 and Nasdaq are
down 0.3% and
0.1%, respectively. The Fed is scheduled to meet on Wednesday (tapering or inflation comments?), we'll get a print on Q2 GDP (exceeding its pre-pandemic size?), while lawmakers hope to advance an infrastructure deal to a Senate vote (resolving a dispute over public-transit funding?)
Don't forget earnings! About 165 S&P 500 companies are due to report in the biggest week of the season. Tech heavyweights like Alphabet (
GOOGL), Amazon (
AMZN), Apple (
AAPL), Facebook (
FB) and Microsoft (
MSFT) will take the spotlight, with the five companies comprising more than a fifth of the total market cap of the S&P 500. The results should illustrate how large businesses are withstanding the pandemic and a recent uptick in inflation.
"This will be a choppy environment for the rest of the year as markets deal with growth that isn't as strong, and markets turn to the potential withdrawal of policy support," said Hugh Gimber, a strategist at J.P. Morgan Asset Management. "You would expect that the spread of the Delta variant would put restrictions in place longer and some supply bottlenecks may not last just a few months."
Going abroad: Chinese regulatory worries resurfaced overnight as Beijing took aim at some of the country's fast-growing listed companies. Shares of private education firms listed in Hong Kong tumbled as Chinese authorities
clamped down on the sector, while the national antitrust authority ordered Tencent (
OTCPK:TCEHY) to give up some of its exclusive music licensing rights. By the end of the session, the Shanghai Composite Index
dropped 2.3%, while the Hang Seng Index
sank nearly 4% for its biggest one-day rout in over a year.
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