Investing.com - A slate of corporate earnings, especially reports from major mega-cap technology companies, will be in focus this week, with investors keen to see how these businesses are adapting to an operating environment made murky by U.S. tariffs. Key data may also provide some insight into how the levies are impacting employment, inflation, and the wider U.S. economy. The Bank of Japan is scheduled to unveil its latest interest rate decision, while Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) will hold its annual meeting.
1. Earnings deluge
The week ahead will be packed with crucial earnings from a range of major U.S. companies, including some of the biggest names in the all-important technology sector.
Software giant Microsoft (NASDAQ:MSFT) and iPhone-maker Apple (NASDAQ:AAPL) will be among the mega-cap tech names to report, as well as e-commerce titan Amazon (NASDAQ:AMZN) and Instagram-owner Meta Platforms (NASDAQ:META). All of the companies form part of the so-called "Magnificent Seven" cadre of tech behemoths which have led stock markets higher in recent years but have flatered to begin 2025.
Out of the over 175 firms in the benchmark S&P 500 that have reported so far, more than 70% have topped expectations, according to LSEG data cited by Reuters. Aggregate S&P 500 earnings for the January to March period are now tipped to increase by 9.7% versus a year ago, up from an estimate of 8.0% on April 1, Reuters reported.
While the quarterly figures from these companies have been in focus, much of the attention has centered around how companies are preparing for the effect of elevated U.S. tariffs. Several businesses have either cut or scrapped their guidance, flagging that the economic picture in the months ahead remains murky.
2. U.S. data
Investors will also be monitoring a bevy of data this week that could help to flesh out the state of the U.S. economy against the backdrop of tariff-fueled tensions.
U.S. gross domestic product data is due out on Wednesday, as well as the monthly reading of the personal consumption expenditures price index -- a measure of inflation closely followed by the Federal Reserve.
A metric tracking activity in the manufacturing sector in April is scheduled to be released on Thursday, while ever-crucial nonfarm payrolls are set to be released on Friday.
In a note to clients, analysts at ING said they would be keeping close tabs on the jobs figures, especially as fears grow that the tariffs could spark a downturn in the wider economy.
"Recessions often start and end with shifts in unemployment," the analysts wrote.
3. BOJ decision
The Bank of Japan is tipped to leave interest rates unchanged at its latest policy meeting on Wednesday, as officials an ongoing policy normalization drive and possible risks to the economy posed by the U.S. tariffs.
U.S. President Donald Trump has tasked his officials with forging dozens of individualized trade deals during a 90-day pause to his so-called "reciprocal" levies. However, Trump has left universal 10% tariffs in effect, along with heightened tariffs on items like aluminum, steel and autos.
Partly due to these changes, the International Monetary Fund moved to slash its global growth forecasts last week -- a decision that is seen leading the BOJ to downgrade its own economic forecasts, Reuters has reported.
However, the central bank is anticipated to signal that risks from increased U.S. tariffs won’t dent wages and price hikes considered to be crucial factors in future borrowing cost decisions, the news agency added.
In March, the BOJ raised interest rates for first time in 17 years, lifting them above zero and ending a long-running effort to stimulate growth by keeping borrowing costs in negative territory.
4. Canadian elections
Canadians are due to head to the polls on Monday, in an election that has been heavily influenced by Trump’s rhetoric and actions.
Current Prime Minister Mark Carney, who took over after the resignation of former PM Justin Trudeau earlier this year, and Conservative leader Pierre Poilievre ended a whirlwind five-week campaign on Sunday. The events were overshadowed by a tragedy in Vancouver, where a man drove through a crowd at a Filipino community festival, leaving at least 11 people dead.
Throughout their campaigning, both Carney and Poilievre have made Washington a central focus. Trump raised the ire of Canadians, long a close trading partner with the U.S., after he slapped tariffs on the country and threatened to annex it.
Polls show that Carney’s Liberal Party, which had been heavily trailing the Conservatives prior to Trump’s statements, has a narrow lead in popular support, Reuters reported. However, it was unclear whether Liberals will have enough seats to form a government without help from a smaller party, even if they do end up winning.
5. Berkshire Hathaway annual meeting
Warren Buffett’s Berkshire Hathaway is set to hold its annual meeting on May 3.
"[I]nvestors will be looking/listening closely for an update on Buffett’s massive cash hoard and whether he deployed any of the money during the recent market pullback," analysts at Vital Knowledge said in a note to clients.
Earlier this month, Buffett said that he would not be speaking about markets, the economy or tariffs until the gathering on Saturday in Omaha, Nebraska. The statement came after Berkshire rejected a post on Trump’s Truth Social account suggesting that Buffett endorsed the president’s economic policies.
Berkshire’s shares have outperformed the wider U.S. stock market so far in 2025. The conglomerate sold a net $134.1 billion in stocks last year, growing its cash pile up to $334.2 billion. What the 94-year old Buffett, one of the world’s most consequential and revered investors, plans to do with this money remains uncertain.
(Reuters contributed reporting.)