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US Equity Investors to Focus on Q3 Earnings, China Trade Tensions This Week Amid Fed's Dovish Stance

BY MT Newswires | ECONOMIC | 10/20/25 06:24 AM EDT

06:24 AM EDT, 10/20/2025 (MT Newswires) -- US equity investors will focus mainly on quarterly earnings and China trade relations this week, ahead of the easing path it expects the Federal Reserve to adopt to tackle labor market weakness.

* Netflix (NFLX) , Tesla (TSLA), and IBM (IBM) are among the companies that will report quarterly results this week, potentially setting the tone for the market.

* With 11% of S&P 500 firms having reported results, Q3 earnings rose by more than 16% year-over-year, ahead of the FactSet consensus for 7.8% as of Sept. 30. The blended earnings growth estimate, which combines reported results with remaining estimates, is calling for earnings growth of more than 8.4%. There are 86 S&P 500 firms scheduled to report Q3 results this week.

* Markets are pricing a 99% probability the Fed will cut interest rates by 25 basis points next week, according to the CME FedWatch Tool early Monday. The likelihood of another reduction of the same magnitude in December is 96%.

* President Donald Trump reportedly said Monday he is open to lowering China tariffs if Beijing "gives us some things too," mixing a tough economic stance with signals of negotiation flexibility. He recently said 100% additional tariffs were unsustainable, but seeks to end China's restrictions on rare earth mineral exports in upcoming trade talks.

* US Treasury Secretary Scott Bessent said Friday he would likely meet Chinese Vice Premier He Lifeng in the week starting Oct. 20 to prepare for the upcoming talks between Trump and his Chinese counterpart, Xi Jinping, in South Korea late in October.

* The September CPI report is due Oct. 24, ACY Securities said last week, citing the Bureau of Labor Statistics. A "skeleton crew" has been called back to publish this report, ensuring the 2026 Cost-of-Living Adjustment can be calculated on time, it said. "This means that the share of data that is imputed is likely to be much higher - calling into question the reliability of the October CPI data," an RBC note said earlier this month.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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