The markets’ recent run of gains could be in jeopardy next week as traders head into the Federal Reserve’s big meeting and profits shift into high gear. The Dow Jones industrial average will snap a 10-day winning streak on Friday as some mild inflation news this month and excitement around artificial intelligence continue to bolster the bullish case for stocks. However, markets are rising ahead of several catalysts next week that could shake up the markets. Many investors expect the Fed to be “one and done” after its policy meeting next week, but a surprise move by the central bank or any hawkish comments from Fed Chairman Jerome Powell could potentially throw cold water on recent investor enthusiasm. “Our over-the-top interpretation of statements and press conferences may cause some jitters in the markets,” said Art Hogan, chief market strategist at B. Riley Wealth Management. Will the Fed be one and done? Wall Street expects a quarter-percentage-point rate hike at the end of the Fed’s meeting on Wednesday, but what’s more unclear is what the central bank will do in September. According to the CME FedWatch Tool, 83% of traders expect monetary policymakers to be done by then. Instead, market participants will be closely watching Powell’s comments on Wednesday to get a better estimate of what the central bank will do as it seeks to transition to a soft landing. Many expect Powell to not deviate too far from the story in the central bank’s continued fight against inflation, perhaps citing the strength of the labor market or consumers. Shannon Saccocia, chief investment officer at NB Private Wealth, said she expected the statement to be less of a market move, saying traders were likely to shift their focus to the Fed’s Jackson Hole Economic Symposium next month. “I think they have an opportunity there if they want to restore expectations,” she said. Despite the recent recovery, recession fears are still on the horizon for many as traders continue to monitor the lagged effect of interest rate hikes, as well as other recent signs of a slowing economy. “We don’t believe it’s time to be aggressive,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management. “But we also think there’s a general sense of stability given that inflation is coming down and we expect it to come down further, but I think our outlook is more of a balanced approach for the rest of the year.” Earnings Season ‘Floodgate’ Including Tech The biggest week of earnings season is also upon us, with mixed results so far. Of the 89 S&P 500 companies that reported, 75% had a positive surprise. According to The Earnings Scout, this performance is below the three-year average of 80%. Traders will get a clearer picture of the state of corporate America next week, however, as they watch corporate sales grow. “It’s the week we’re all waiting for, isn’t it?” said NB Private Wealth’s Saccocia. “Next week will really provide a good amount of transparency on the margin compression that everybody expected, because that’s, I think, really what’s driving as we’ve entered this year, the lower earnings expectations and the fear of an earnings apocalypse.” Big tech companies like Alphabet and Microsoft are on board Tuesday and will likely steal the thunder from other news. But Saccocia urged investors to also watch consumer giants or luxury consumer names to get a sense of how shoppers are spending the price increases. Calendar for next week. All times ET. Monday 8:30 AM: Chicago Fed National Activity Index (June) 9:45 AM: S & P Global Manufacturing PMI (July) 9:45 AM: S & P Global Services PMI (July) Earnings: Domino’s Pizza , F5 Tuesday 9:00 AM: S & P/Case-Ju Home Consumer Confidence (May) Consumer Price Index GE10 ams. gen , Danaher , GE HealthCare , GM , Alphabet , Visa , Microsoft Wednesday 10:00 AM: New Home Sales (June) 2:00 PM: FOMC Policy Decision Earnings: Coca-Cola , Boeing , Hess , ADP , CME Group , AT & T , 30 eBay Thursday Opening Order: 8: Dura: Sun) 8:30 AM: Second Quarter GDP (First Preliminary Reading) 10:00 AM : Pending Home Sales (June) Earnings: Honeywell , Hershey , McDonald’s , Mastercard , Northrop Grumman , Royal Caribbean , Enphase Energy , Index First Solar , T-Mobile , Personal Consumption Ford 3 and Intel Friday 8 10:00 AM: Consumer Sentiment (End July) Earnings: Exxon Mobil , Chevron , Procter & Gamble , T. Rowe Price