Markets closed the prior week on a positive note, with investors positioning for what is expected to be one of the busiest earnings weeks of the season.

Friday’s flash PMI readings from S&P Global showed manufacturing at 53.8 and services at 53.6, both coming in better than expected on the services side. The composite print beat forecasts as well. With 27% of S&P 500 companies having reported so far, 86% have beaten EPS estimates and 80% have topped revenue forecasts. Blended earnings growth for the index is now tracking at +37.9% year-over-year.

The week of July 27 brings a heavy calendar. Mega-cap names scheduled to report include Microsoft, Apple, Amazon, Meta, Arm, Qualcomm, Visa and Mastercard. Other notables on the docket are SoFi, PayPal, Robinhood, AutoZone, Roblox, Boeing, Reddit, ExxonMobil, Coca-Cola, Chipotle and Starbucks.

Market participants are watching how the big-tech results will influence sentiment, particularly around AI spending and consumer resilience. No major economic data releases are scheduled for Monday, so attention will stay on corporate commentary.

Futures point to a measured open on Monday as traders digest the weekend flow and prepare for the wave of earnings. Volatility is likely to rise once the marquee names begin reporting later in the week.

Why it matters

Earnings season remains the dominant driver. Strong beats so far have supported the recent rally, but the market will look for confirmation that growth is broadening beyond the largest names.

The bottom line

The setup into Monday is constructive on paper, with earnings momentum intact and no negative macro surprises over the weekend. The real test arrives when the mega-caps speak.