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Market sentiment may turn nervous, as earnings reports from major U.S. companies could significantly influence market direction.
Outlook for the week of July 20–24: The Nikkei 225 may see nervous trading, as earnings reports from major U.S. companies could sway market sentiment. While there is some expectation that the recent correction in artificial intelligence (AI) and semiconductor-related stocks may have run its course, market direction will likely hinge on earnings results from key U.S. firms such as Alphabet and Intel. If the rebound in AI and semiconductor stocks remains sluggish, investor interest may continue shifting toward relatively resilient sectors such as retail and information services. Additionally, Japan’s consumer price index (CPI), scheduled for release on July 24, could influence expectations regarding a potential rate hike in September.
A trading range is expected, with continued focus on earnings reports from AI-related stocks.
Outlook for the week of July 20–24: The Dow Jones Industrial Average is expected to trade sideways. With few economic data releases scheduled this week and a blackout period ahead of next week’s Federal Open Market Committee (FOMC) meeting—during which Federal Reserve officials refrain from public commentary—market attention will likely remain focused on earnings reports from artificial intelligence (AI)-related stocks. Geopolitical tensions in the Middle East are unlikely to see rapid near-term improvement, and as earnings season gains momentum, stock-specific trading activity is expected to intensify.
Key events next week: ECB interest rate decision; earnings reports from Google, Tesla, IBM, Intel, and CATL
On the earnings front, Google, Tesla, Intel, IBM, Texas Instruments, and CATL will release their financial results, while AMD will host its AI conference, featuring a keynote speech by CEO Lisa Su. On monetary policy, the European Central Bank's interest rate decision is due, with markets expecting no change. Geopolitically, developments in U.S.-Iran relations remain in focus, and Bernard Burnham is expected to formally assume office as UK Prime Minister. Additionally, China’s key domestic meetings in July, the potential IPO of ChangXin Technology, the official release of DeepSeek V4, and the FIFA World Cup final are also noteworthy events.