05:26 AM EDT, 10/27/2025 (MT Newswires) -- US equity investors will focus on earnings from the so-called Magnificent-7 companies this week, while expecting an announcement on China trade tariffs and awaiting the Federal Reserve to unveil its policy path.

* Five Mag-7 members with a significant weight across the three mainstream equity market indexes -- Microsoft (MSFT), Meta Platforms ( META ) , Alphabet (GOOGL, GOOG), Apple (AAPL), and Amazon (AMZN) -- will report quarterly earnings this week. Their results could set the tone for where markets go for the rest of this year.

* Markets are pricing a 97% probability the Federal Reserve will cut interest rates by 25 basis points on Oct. 29, according to the CME FedWatch Tool early Monday. The likelihood of another reduction of the same magnitude in December is 96%.

* Beyond the October cut, the base case scenario at Macquarie Group remains another cut in Q1, "although there is an increasing chance it occurs in December" because of September's favorable core inflation reading on Friday and the ongoing federal government shutdown. Both the headline and core consumer price index slowed sequentially from August.

* The government shutdown stretched into its fourth week, making it the second-longest in US history, according to media reports. With President Donald Trump in Asia and no legislative breakthrough expected this week, the political impasse is set to continue.

* President Trump is expected to meet with his Chinese counterpart, Xi Jinping, on Oct. 30, during the Asia-Pacific Economic Cooperation summit in South Korea. US Treasury Secretary Scott Bessent reportedly said the two leaders are expected to reach a deal to avert a new 100% U.S. tariff on Chinese goods.

* A "framework" is ready for a meeting this week between Trump and Xi that is intended to avoid the harsher tariffs threatened by Trump starting Nov. 1, should Beijing move forward with plans to put restrictions on rare earth minerals, Bessent said, according to NBC News.