Can the Magnificent Seven bounce back after a $850B market wipeout?

The busiest earnings week of the season kicks off Monday, with five of the biggest companies in the world set to open their books.

Alphabet, Amazon, Meta, and Microsoft all report on Wednesday. Apple follows on Thursday.

These five companies are part of the so-called Magnificent Seven, a group of large tech firms that have driven much of the stock market's gains in recent years.

The Magnificent Seven had a rough start to 2026. In the final week of March, the group lost a combined $850 billion in market value. All seven stocks were negative on the year by month's end.

Since then, things have improved. The Roundhill Magnificent Seven ETF has returned 13% over the past month, compared to a 9% gain for the S&P 500.

Morgan Stanley estimates the group's net income will grow 25% in 2026, well ahead of the 11% expected for the remaining S&P 493 companies.

Investors will be watching closely for updates on AI infrastructure spending. Both Meta and Microsoft have raised questions recently - Meta announced 8,000 layoffs, while Microsoft offered buyout packages to some staff.

The Federal Open Market Committee meets Tuesday and Wednesday, with its rate decision due at 2 p.m. ET on Wednesday. Traders are pricing in a 99.5% chance rates stay in the 3.5% to 3.75% range.

Fed Chair Jerome Powell also received personal good news on Friday. The Justice Department dropped its criminal investigation into Powell over cost overruns during renovations at the Federal Reserve building.