Markets Eye Microsoft, Meta Earnings and Fed Decision as Rotation Into Value Continues

Wednesday is shaping up to be a pivotal session for financial markets, with investors eagerly—and somewhat nervously, following yesterday’s rather disappointing preview from SK hynix—awaiting earnings releases from Microsoft and Meta. As for the Federal Reserve meeting, markets broadly expect policymakers to leave rates unchanged while maintaining guidance that another rate hike could still be on the table this autumn.

Overall market sentiment remains neutral. Geopolitical uncertainty and ongoing concerns surrounding AI are being offset by the resilience of the “old economy,” which continues to show solid fundamentals and supports an ongoing rotation toward value stocks. In our scoring system, the Value style has gained more than four points over the past week, while Growth has lost a similar amount, slipping toward the lower end of the neutral range.

Equity futures point to a nervous start, with both European and U.S. markets expected to open slightly lower.

Financial markets sentiment

Financial markets currently exhibit an overall neutral sentiment. Our intermarket analysis shows a Market Health Score of 71/100, indicating a positive underlying backdrop. However, our intermarket dashboards continue to highlight a challenging environment for the technology sector, while inflation and interest rate expectations remain elevated.

The S&P 500/Nasdaq ratio continues to trade above its long-term moving average and has returned to levels last seen at the end of April. Meanwhile, the Dow Jones/Gold ratio remains broadly unchanged, while the S&P 500/VIX ratio continues to fluctuate significantly within the range defined by its medium- and long-term moving averages. Together, these signals reinforce a neutral market environment—one characterized by caution, but not yet by a clear shift toward risk-off positioning.

It is also worth noting that the Dollar/Gold ratio has lost downside momentum, while the Commodities/Bonds and Oil/Gold ratios continue to point to persistent inflationary expectations and the prospect of higher interest rates.

There are few notable developments across asset classes. The ongoing slowdown in global fixed income markets has weakened the positive correlation between bonds and equities, with our indicator now falling below its annual average.

Our proprietary Market Weather Map confirms this overall picture, signaling broadly neutral conditions for equities—with U.S. technology slipping below the 50-point threshold—and continued weakness in fixed income. Looking at daily movements, the system highlights the Dow Jones Industrial Average moving back above the 50-point level, while Bitcoin has fallen below it.

Global Futures – Pre-Market Sentiment

Pre-Market Futures: Global equity futures indicate a risk-off tone, averaging -0.89%, with U.S. futures modestly lower (-0.38%), European futures slightly negative (-0.29%), and Asian markets significantly weaker (-1.63%).

Macroeconomic calendar

On the macroeconomic front, today’s calendar includes Australia’s June 2026 inflation data, UK consumer credit figures, and Germany’s import price index. The main event of the day, however, is the Federal Reserve meeting, with some residual uncertainty surrounding the decision to keep interest rates unchanged.

On the earnings front, today’s key releases include results from Microsoft, Meta, Qualcomm, Procter & Gamble, Hermès, UBS, and Starbucks.

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NOTES AND WARNINGS

Data compiled by kbmeter.com. Analysis date: 29 July 2026 - 7:54 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.