U.S. stocks are heading into a week shaped by two major market tests: the Federal Reserve's interest rate decision and a heavy slate of corporate earnings reports, according to The Economic Times.

Investors are waiting to see whether the Federal Reserve will keep interest rates steady and what policymakers signal about the path of future rate moves. The market remains sensitive to signs of economic weakness, inflation pressures and potential shifts in policy. The Fed's rate decisions carry broad implications across asset classes, as borrowing costs influence corporate spending, consumer demand, and the relative attractiveness of equities versus fixed-income investments.

The central bank's decision comes as rising oil prices add another complication to the inflation outlook. Oil prices have been volatile amid geopolitical tensions and supply constraints, and energy costs feed into a wide range of consumer and business expenses. Any indication that inflation remains difficult to contain could influence expectations for interest rates and affect how investors value equities.

A large earnings week will also draw attention, especially from technology companies and businesses tied to artificial intelligence. Major technology groups and AI-related companies are scheduled to release quarterly results, with investors watching for updates on corporate performance and spending linked to artificial intelligence. Technology stocks have been a significant driver of market performance in recent quarters, and AI-related capital expenditure commitments from large firms have drawn particular scrutiny as a gauge of whether the sector's investment pace is sustainable.

Future interest rate expectations are likely to remain a key factor for investor sentiment and stock valuations. Markets will be closely focused on whether the Federal Reserve signals continued caution, a willingness to hold rates steady, or concern that additional rate increases may still be needed.