rewrite this title The Daily Breakdown: Fed, Mag 7 Earnings Set Up a Pivotal Day for Markets

The Daily Breakdown gears up for the Fed and Mag 7 earnings, while taking a closer look at Seagate Technologies and Starbucks’ chart.

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What’s Happening?

There are a few times a year when the investing calendar feels overwhelming, and today is one of those days. Amazon, Microsoft, Alphabet, and Meta — a combined $11.9 trillion in market cap — will report after the close. Amazon and Alphabet recently rallied to record highs, while Meta and Microsoft are still down more than 15% from their highs. And it’s not just Big Tech reporting tonight. We’ll also hear from companies like Chipotle, Ford, Qualcomm, and others.

But before we get to all that, investors have a Fed meeting and interest-rate decision due at 2 p.m. ET. The consensus expectation calls for no change in rates, but as always, Chair Powell’s Q&A session 30 minutes later will be closely watched.

⚡ Crypto Corner

Dogecoin is erupting this morning, up more than 11% amid a generally mild rally in the crypto space. With the move, DOGE is now trading at its highest level since mid-February. Shiba Inu is also participating, up around 5% on the day.

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The Setup — Starbucks

Shares of Starbucks are higher by about 4% in pre-market trading after the company beat earnings and revenue expectations, while also raising its full-year outlook for same-store sales and earnings. For a refresh, check out our Deep Dive on SBUX. 

The rally has Starbucks trading back into recent resistance in the $100 to $104 range. After falling from around $116 to $76 amid the trade-war drama of 2025, Starbucks has been working on a slow recovery. If it can clear resistance, bulls might look for renewed upside momentum. However, if resistance holds, the stock could continue to consolidate.

Options

Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration. 

To learn more about options, consider visiting the eToro Academy.

What Wall Street’s Watching

SOFI

Shares of SoFi are down almost 10% in pre-market trading despite beating Q1 revenue expectations and reporting that earnings doubled year over year. While management’s full-year outlook was solid, its Q2 outlook came in a bit light versus expectations. Dig into the fundamentals for SOFI.

STX

The memory theme continues to gain traction, with Seagate Technology the latest name to join the party. Shares are up more than 15% this morning after the company reported better-than-expected earnings. As of yesterday’s close, the stock was already up about 600% over the past year. Today’s rally is also giving a boost to Western Digital and Micron, among others. Check out the chart for STX.

FICO

Fair Isaac Corp has struggled over the past few years, falling more than 60% from its 2024 high near $2,400 to a recent low below $900. However, the stock is up roughly 10% this morning after the company beat earnings expectations. Freshen up on FICO with our Deep Dive.

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.