Earnings that reveal more about consumer will be critical, says Apollo Global's Torsten Slok

• The upcoming FOMC meeting is crucial for understanding the Fed's communication on future policy and its balance between inflation and employment mandates.
• Earnings reports, especially those revealing consumer health, will be critical, as the US economy is transitioning from past headwinds to new tailwinds (lower oil, weaker dollar, fiscal stimulus, AI/data center build-out).
• Small-cap outperformance, particularly from companies with negative earnings, is described as 'worrying' and 'unusual,' suggesting a potential disconnect in market dynamics.

Apollo Global's Chief Economist, Torsten Slok, discusses the critical week ahead, highlighting the upcoming FOMC meeting and earnings reports. While acknowledging macro tailwinds like lower oil prices and fiscal stimulus, he expresses concern over the unusual small-cap stock performance driven by companies with negative earnings, and notes the bond market's expectation of higher rates for longer.