Four times a year, America gets a report card on the performance of its biggest public companies – it's called earnings season, and it can have a massive impact on your 401(k).

The spring edition kicked off earlier this month, and we're now entering its most important week when companies totaling almost half the value of the US stock market report their quarterly results.

But that's not all. There's a pivotal Federal Reserve meeting on Wednesday where interest rates will be set, a highly anticipated GDP report on Thursday and the Berkshire Hathaway annual meeting on Saturday.

Today (Wednesday) alone, companies representing nearly a quarter of the total value of the S&P 500 report - meaning a single day could swing the entire market. 

The grouping includes four of the so-called 'magnificent seven' tech giants – Microsoft, Amazon, Alphabet and Meta – which dominate millions of retirement portfolios, who are all set to give their figures in a mad-cap two minutes just after the market shuts in New York.

In total, nearly 180 companies in the index report this week – Apple goes on Thursday – making it the busiest and most important stretch of earnings season. 

Other notable names include Coca‑Cola, Starbucks, Mastercard and Eli Lilly, plus the big three US auto manufacturers: Ford, GM and Stellantis, which owns Chrysler.

'For companies, if you haven't beaten, beaten, beat and raised, you've gotten slaughtered in this market,' Nancy Tengler, chief executive officer of Laffer Tengler Investments, told the Daily Mail.

Strong Market Performance Despite Geopolitical Tensions 

Despite the smoldering war in the Middle East, US stock markets are back at all-time highs. For many companies reporting earnings, that means even very good results are not good enough to please investors right now.

According to FactSet, 84 percent of stocks in the S&P 500 index that reported earlier this month have beaten expectations, setting a very high bar for the companies reporting this week.

For many investors, the highlight of the week will be results out of the magnificent seven stocks.

The group accounts for almost one third of the S&P 500's total value, and their results tend to dictate where the broader market – and your 401(k) – is heading.

'When it comes to these mega-cap companies, we continue to see the theme that good is not good enough,' Jay Woods, chief market strategist at Freedom Capital Markets, told the Daily Mail.

The stocks of Apple, Alphabet, Amazon, Meta Platforms and Microsoft are all gaining ground heading into their reports, and Woods is eager to hear what each company has to say about the year ahead.

'What we're going to look for is guidance,' Tengler told the Daily Mail, referring to forecasts from companies where they formally commit to hitting concrete targets in future quarters. 'Margins are at historic highs, and we want to see if that can sustain.'

Both Tengler and Woods said artificial intelligence remains a huge theme. Tengler said companies have mentioned how they were using AI to boost profits, while Woods wants to hear more about how Apple will handle the transition to newly named CEO, John Ternus.

The five Mag 7 companies reporting this week have delivered strong results in recent quarters – and Wall Street analysts expect all of them to deliver outstanding numbers this time around. But to our analysts' point about very good not being good enough, the last earnings season saw shares of fellow group member Nvidia absolutely tank after the company said revenue had grown 73 percent over the prior year.

Market Shift Away From Geopolitical Concerns 

Additionally, the broader stock market seems to have completely forgotten the Iran War.

According to Mark Malek, chief investment officer at Siebert Financial, the focus for many investors has turned to earnings as a driver. But at the same time, companies are still talking about the war and higher oil prices.

Malek cautions that the current earnings season mostly reflects the period before the war began, so the impact of higher oil prices won't be seen clearly in backward-looking numbers.

On the other hand, forward-looking guidance will absolutely reflect companies' assessment of the war's impact down the road.

'Corporate executives are saying that they expect the conflict to draw out over a longer period of time, and that's forcing them to change up expectations,' Malek told the Daily Mail.

For companies that use fuel as a direct input cost – think airlines, cruise lines and shipping companies – profits are going to be lower going forward, which will have a negative impact on both the company's stock and your portfolio.

Malek said companies will pass along higher costs to consumers, and it's only a matter of time before cost increases start showing up in monthly budgets beyond price shock at the gas pump.

'Don't believe me? Monitor shipping costs or airline costs over the next few weeks, then come back to me with your findings,' Malek said.

Guidance for Managing 401(k)s Amid Market Uncertainty 

So what should regular folks do with their 401(k)s this week?

For Tengler, the fact that the stock market found its feet at the beginning of April and shot much higher means it's time to buy 'high-quality holdings.'

'Corporate profits are healthy and future profits represented by company guidance are expected to grow low double-digit in 2026,' she said.

High-quality stocks are companies that have low debt and plenty of liquidity – making them ready to face tougher conditions without distress – plus stable and predictable profits that are insulated from the inevitable big swings in the economy.

Investors consider two of the Mag 7 tech stocks reporting earnings this week to be leading high-quality stock candidates: Microsoft and Meta Platforms.

According to the Motley Fool, Meta and Microsoft earn this status thanks to their dominant AI leadership, immense cash flow and consistent revenue growth. 

For Meta, the company's core advertising business grew revenue 24 percent year-over-year in its last earnings report – and that's exactly the kind of high-quality growth Tengler is talking about.

Microsoft is a shining example of the kind of liquidity you want: It has giant reserves of cash, which allow the company to keep buying back shares and maintain its 16-year streak of dividend increases – each of which help keep the company's value on track for the long term.

Anticipation Around Fed Meeting and Market Reactions 

After earnings, the Fed meeting will be the other major focus this week, with markets watching to see how the drama unwinds between the Trump administration and outgoing Fed chair Jerome Powell.

Last week, the administration finally abandoned its criminal probe of Powell, which prompted a key member of the Senate to end his blockade of confirmation hearings for Trump's hand-picked successor, Kevin Warsh.

'Now that the Department of Justice has dropped its criminal probe, this will most likely be Powell's final time to address the audience as Fed chair,' Woods said.

If Warsh is not confirmed by the Senate before May 15, when Powell's term as Fed chair officially expires, Powell will continue serving as chair pro tempore.

Powell has stated he will remain as acting chair until his successor is in place – and remain after that time as a Fed governor if there was an ongoing investigation.

Woods told the Daily Mail what he'll be watching for at the Fed meeting: Powell will need to clarify his intentions about remaining as a Fed governor and voting member after his term as chair ends, since his term as a governor doesn't end until 2028.