Investors Eye Fed Minutes, Early Earnings as Tech Stocks See Increased Volatility

U.S. investors are looking to Wednesday's Federal Reserve meeting minutes and early corporate earnings from Delta Air Lines and PepsiCo this week for additional insight into the outlook for interest rates, as increased volatility in heavyweight technology shares tests the durability of 2026's tech-led market rally.

Market Reaction

The S&P 500 rose 14.9% in the second quarter — its strongest quarterly performance since 2020 — driven largely by technology and semiconductor stocks. However, the sector has experienced sharper price swings in recent sessions, including a notable decline late last week. Healthcare, industrial and financial shares have outperformed over the past month, contributing to expectations of broader market participation. The S&P 500 is up more than 9% year-to-date, while the Nasdaq Composite has gained 11%.

Fundamental Drivers

According to LSEG data, market expectations for U.S. interest rates have shifted from earlier expectations of policy easing toward the possibility of additional tightening, although those expectations moderated slightly following a softer-than-expected June jobs report.

Investors will examine Wednesday's Federal Reserve meeting minutes for additional insight into policymakers' assessment of inflation, economic conditions and the outlook for monetary policy. Analysts also expect markets to focus on officials' views regarding energy-related inflation risks and any differences in opinion over the future policy path.

What's Next

Beyond the Fed minutes, investors will monitor upcoming services and manufacturing data for additional inflation signals, while earnings from Delta Air Lines and PepsiCo will be among the first major corporate reports ahead of the second-quarter reporting season. According to LSEG IBES, S&P 500 earnings are expected to increase by more than 24% from a year earlier.