Tesla’s outlook dented the Magnificent 7. Still, the divine combination of growth and tame inflation boosted stocks. The Fed meeting this week is the next event to watch.

With most banks done, earnings growth should improve. A crossroads could be near for stocks, either more companies joining the rally or the Magnificent 7 needing a rest.

This week remains heavy on earnings-challenged banks, with some smaller regional banks likely to see lesser charges from the FDIC assessment but more write-offs from commercial real estate. Investors should expect positive earnings growth once the banks are in the rearview mirror.

The modest expectations of slight year-over-year earnings gains seem likely to be exceeded. Much attention will be paid to management’s future earnings guidance for 2024.

Rebalancing and the retreat in odds of a March Fed rate cut led to market declines to begin 2024. The CPI reading on Thursday will be the next big hurdle for markets.