The Week Ahead ( GOOGL, TSLA and CVE Earnings; Bank of Canada Decision, US PCE Data)

Investors are also likely to be watching for updates on Alphabet's artificial intelligence initiatives, including Gemini Live and Project Astra. The company is reportedly in talks to acquire cybersecurity firm Wiz in a deal worth $23bn, which would be its largest acquisition to date. Alphabet shares have gained almost 30% since the start of the year.

Tesla's core business of electric vehicles is expected to show profit improvement, and investors will be watching for sustained growth in the energy generation and storage division. Tesla lost market share to rivals in its domestic market, and concerns remain over inventory levels and market share challenges in Europe and China.

The development of autonomous taxi platform Robotaxi and Full Self-Driving suite of advanced driver-assistance systems will be of interest to investors, as will the impact of these initiatives on future revenue streams. Tesla's high valuation means there is a risk of a correction if earnings or guidance fall short of market expectations.

Softer inflation in Canada in June provided a small relief after an upside surprise in May, and set the Bank of Canada up for another 25-basis point interest rate cut on Wednesday to build on its first cut in June.

Similar to the June meeting, analysts think the central bank will highlight a weakening economic backdrop and broadly easing underlying inflation without providing additional guidance on the timing of future rate cuts. Risks are that there will be less easing bias, given the slightly choppier progress in recent consumer price index readings. The BoC’s preferred measures of “core” inflation have been edging higher on a three-month annualized basis since April, but a streak of lower prints earlier this year means the six-month annualized readings have still been trending lower.

The Bureau of Economic Analysis is set to release its initial assessment of second-quarter gross domestic product on Thursday. Analysts predict a seasonally adjusted annual growth rate of 1.9%, up from 1.4% in the first quarter of 2024.

Investors should also keep an eye out for the personal consumption expenditures price index, which is expected to show a year-over-year increase of 2.5% for June, a slight decrease from May's figure of 2.6%.