Tech stocks lead summer rally, AI spending bullish, Fed decision and Jobs report next week

Stocks rose this week as the summer rally continues, with mixed tech sector news but mostly positive earnings. The US-Japan trade deal was finalized, but tariff uncertainty remains. Next week's Federal Reserve decision and July Jobs report will be key market movers. Articles highlighted five physical AI stocks, Verizon Communications as a growth opportunity, and Congressional trading activity. Tesla stock fell after a challenging earnings report, Qualcomm is undervalued, and Amazon's high valuation may hinder further gains.

Stocks rose this week as the summer rally continues, driven by mixed news from the tech sector and positive earnings reports. The US-Japan trade deal was finalized, but tariff uncertainty remains, particularly with the Trump administration's August 1 deadline looming. Next week's Federal Reserve decision on Wednesday and the July Jobs report on Friday are expected to be key market movers.

The tech sector saw mixed news, with some companies reporting better-than-expected earnings. However, the sector as a whole remains uncertain due to ongoing trade issues and the potential impact of tariffs. Thomas Hughes highlighted five physical AI stocks as potential investment opportunities, noting that continued capital expenditures in AI could be bullish for the sector [1].

Verizon Communications (VZ) was identified as a solid growth opportunity by Hughes, who praised the company's high-yield dividend and recent earnings report. Meanwhile, Congressional trading activity became a topic of keen interest, with Hughes highlighting five stocks with the most selling in the year's first half [1].

Tesla (TSLA) stock fell sharply after the company's earnings report, with CEO Elon Musk warning of challenges in the next two quarters. Sam Quirke explained that analysts are playing the long game despite the recent sell-off, suggesting that the stock may bounce back [1].

Qualcomm (QCOM) was noted as one of the more undervalued semiconductor stocks, with a recent price target hike and upcoming earnings report potentially signaling a rally in the stock [1]. Amazon (AMZN) stock has rallied towards its February high, but its high valuation may hinder further gains, according to Sam Quirke [1].

The week also saw significant movement in other sectors. Palantir Technologies (PLTR) continues to outperform the broader market, but the stock may become more volatile heading into its earnings report in early August [1]. Rocket Lab (RKLB) stock has pulled back from its parabolic move, but technical and fundamental factors support the long-term bull case, according to Ryan Hasson [1].

In the tech sector, Alphabet (GOOGL) stock has lagged its counterparts this year but may see a rebound after crushing its earnings report, according to Hasson [1]. The quantum computing sector also saw significant activity, with Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) experiencing price spikes, though caution is advised due to the lack of specific catalysts [1].

Investors should keep an eye on the upcoming Federal Reserve decision and July Jobs report, as these could significantly impact the market. The summer rally continues, but uncertainty surrounding trade policy and earnings reports may lead to volatility in the coming weeks.

References:
[1] https://www.marketbeat.com/originals/marketbeat-week-in-review-07-21-07-25/