TL;DR:

The next FOMC meeting is next Wednesday, July 26 - it's likely the Fed will raise rates by 25 basis points
Headlines are bracing for a pullback on stock prices - the rally went on longer and higher than expected.
It's earnings week - look out for volatility

"Financials kicked off earnings season on Friday telling two different stories about the banking system. Large institutions like JPMorgan (JPM) and Wells Fargo (WFC) topped analyst expectations as JPMorgan reported a 67% increase in profits in the second quarter."
"With its stock up nearly 130% this year Tesla has seen investors react both to AI-related hype around its self-driving capabilities as well as strong vehicle delivery figures and the rapid expansion of its Supercharger network with industry competitors."

"As the Federal Reserve has hiked interest rates in its battle against inflation, a big question for investors has been whether the central bank can achieve a soft landing, or an economic slowdown without a recession, in the US."

"The market consensus is that the Fed will raise its interest rate at least one more time before the year concludes. Future funds traders are pricing in an over 95% chance the U.S. central bank will raise its bench mark interest rate in July by 25 basis points to the range of 5.25% to 5.5% and a 23% likelihood that it will deliver one more hike after July, according to CME Fed Watch."

"Morgan Stanley (MS) and Goldman Sachs (GS), two of the world’s biggest dealmakers, are due to report Tuesday and Wednesday. Bank of America (BAC), which has a big Wall Street operation, also reports Tuesday. All are expected to show drops in investment banking and trading from the first quarter."

"The ad by the the Republican National Committee (RNC) contained fictional scenarios of a Chinese attack on Taiwan and martial law in San Francisco, which was rendered using eerily realistic visuals via AI imagery. In response, Rep. Yvette Clarke (D-NY) swiftly introduced legislation demanding the disclosure of AI-generated content in political ads. That said, the bill is essentially a giant exercise in virtue signaling given the Republican-dominated chamber."

"Yardeni, who correctly forecasted the S&P 500’s Oct. 12 closing low would mark a lasting bottom, believes any pullback will be a correction, not a new bear market beginning, as his firm sees just a 25% chance of recession in the next two and a half years.He expects the bull market that began last October will last until “at least the end of next year,” bringing with it a fresh record high for the S&P 500 of between 4800 and 5400 in the next 18 months. The S&P 500 SP500.452020, +0.03%, S&P 400 SP400.45, -1.76% and S&P 600 SP600.45, -1.60% information tech indexes will led the way, he adds, noting the below chart that shows all three poised for new highs:"

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