* Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ), Apple ( AAPL ), Meta all set to

report

* Over one-third of S&P 500 companies due to post results

* Fed meeting on Wednesday could be Powell's last as

chair

* Q1 GDP, PCE inflation data also due in coming week

By Lewis Krauskopf

NEW YORK, April 24 (Reuters) - A scorching U.S. stock

rally faces a test from a mammoth week of corporate results led

by major technology companies, along with a Federal Reserve

meeting that could mark the end of Jerome Powell's tenure as

head of the U.S. central bank.

Equity indexes have soared this month, rebounding from worries

about economic fallout from the Middle East conflict to mint

record highs. The benchmark S&P 500 as of Friday was up

about 13% since March 30. In that span the tech-heavy Nasdaq

Composite jumped more than 19%.

"We've come a long way in a short amount of time," said

Anthony Saglimbene, chief market strategist at Ameriprise. "Next

week is just going to be a big week for confirmation of the

rally."

Although a Middle East ceasefire alleviated concerns about a

more severe escalation and helped fuel the equities rally,

developments involving the U.S.-Israeli war with Iran remained

likely to jostle asset prices in coming days.

"MAGNIFICENT" EARNINGS MOMENT

Expectations for strong profits this year have boosted

investors' bullish outlook for stocks, and first-quarter

reporting season is off to a solid start. As of Friday, 81.3% of

S&P 500 companies have posted earnings above analysts'

expectations, with overall earnings expected up 16.1% in the

first quarter, according to Tajinder Dhillon, head of earnings

research at LSEG.

More than one-third of the S&P 500 is set to post results

next week alone. They include five of the "Magnificent Seven"

megacap companies, which have been among the signature stocks of

the bull market that began more than three years ago.

Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ) and Meta

Platforms ( META ) report on Wednesday, with investors focusing

on their massive capital spending plans to build out data

centers and other infrastructure to support artificial

intelligence applications. Apple ( AAPL ) reports on Thursday,

on the heels of the iPhone maker announcing a change of CEOs.

"These companies have a lot to prove, and for their stock

prices to move higher, they're really going to have to wow

investors on the earnings front," Saglimbene said.

After mixed starts to the year, the Magnificent Seven and tech

stocks broadly have mostly put up a strong performance this

month. Chipmaker stocks have been standouts, with the

Philadelphia SE Semiconductor index rising for 18

straight sessions as of Friday.

Other companies reporting next week include weight-loss

drugmaker Eli Lilly ( LLY ), oil major Exxon Mobil ( XOM ) and

payments processing company Visa.

FED MEETING TO BE POWELL'S LAST?

The Fed is widely expected to hold interest rates steady in

its policy statement on Wednesday at the end of its two-day

meeting. Investors will seek updated views from policymakers

about the war's impact on the economy and the path for interest

rates.

Concerns about a war-driven surge in energy prices have led

investors to temper expectations for equity-friendly rate cuts

this year. Markets are pricing in less than one standard

25-basis-point cut by December, according to LSEG data, after

expecting at least two before the war began in late February.

Still, "the Fed being on hold...is somewhat supportive,

versus other central banks that are expected to hike in the next

couple of meetings," said Marvin Loh, senior global macro

strategist at State Street. "So it ... provides a little bit of

a tailwind for U.S. assets."

The meeting also is poised to be the last with Powell at the

helm, with his term as chair set to end on May 15. Former Fed

Governor Kevin Warsh, President Donald Trump's pick as the next

Fed chair, appeared before a U.S. Senate panel this week for his

confirmation hearing.

News emerged on Friday that the U.S. Justice Department was

closing its investigation into Powell over renovation costs of

the Fed's headquarters, clearing a key obstacle for Warsh to

take over.

Next week also features data on first-quarter U.S. economic

growth, as well as the March Personal Consumption Expenditures

Price Index, the Fed's preferred gauge for inflation. Both

reports could offer insight into the Middle East conflict's

economic fallout so far.

The war remains a key issue for markets, said Sid Vaidya,

chief investment strategist at TD Wealth.

"The concern for us would be that we've seen the market

rebound, but we don't have a permanent resolution in place,"

Vaidya said. "The longer the conflict goes, the greater the risk

to the real economy, which will then translate into some

potential pain and volatility for markets."