What to Expect in the Week Ahead (MU, ACN, FDX Earnings; FOMC Decision)

While only a few companies are set to release earnings reports this week, the stock market is bracing for a potentially pivotal moment. This week, the Federal Reserve is expected to announce whether it will lower interest rates - a decision that could significantly influence the economic and financial landscape heading into 2025.

1. Micron Technology is set to report fiscal 2025 first-quarter earnings after the market closes Wednesday, with analysts overwhelmingly bullish on the chipmaker's stock.

Wall Street expects Micron to report revenue of $8.72 billion, 84% higher year-over-year, and for the company to swing to a profit of $1.84 billion or $1.58 per share, compared to a loss of $1.23 billion or $1.12 per share a year earlier.

2. Professional services firm Accenture is another company benefitting from the global push in AI, as more non-technology firms look to build this into their business models to remain competitive.

Accenture said in its fourth quarter results that its new business bookings in AI had reached $1 billion, which was up from $900 million in the third quarter. For the year, the company's generative AI new bookings totalled $3 billion.

3. FedEx, which is considered as a bellwether for the US economy, logged profits of $892m in its fiscal first quarter, which was 24% lower than what analysts were expecting.

The company also lowered its financial outlook for the fiscal year ahead, projecting earnings per share between $20 and $21 versus its prior range of $20 to $22.

Wednesday takes center stage as the Federal Open Market Committee (FOMC) announces its highly anticipated decision on interest rates. The CME Group’s FedWatch tool, which measures market expectations for Fed fund rate changes, expects a 25-basis-point rate cut. Following the decision, Federal Reserve Chair Jerome Powell will speak on the economic outlook and monetary policy trajectory.

The week concludes on Friday with the release of the Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation tracking changes in consumer spending on goods and services. Additionally, the consumer sentiment report for December will be unveiled.