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Fed Rate Decision Looms: Big Tech Earnings in Focus
26 Oct
Summary
- Federal Reserve interest rate decision expected this Wednesday.
- Google, Microsoft, and Amazon to report Q3 earnings this week.
- Investors await signals on AI investment returns from tech giants.
The week of October 26th presents a significant focus for investors, headlined by the Federal Reserve's interest rate decision due Wednesday afternoon. While markets are largely pricing in a hold on rates, the Fed's commentary will be scrutinized for any indication of future policy shifts, especially with inflation still above the 2% target.
Following the Fed's announcement, a string of major tech companies are set to report their third-quarter financial results. Alphabet (Google) will release its earnings, with particular interest in its cloud segment and the demand for its AI chips. Investors are keen to see how its core advertising business is positioned against emerging AI tools.
Microsoft is also scheduled to report on Wednesday. The company, which recently reached a record high, faces scrutiny over the profitability of its substantial AI investments, including its Azure cloud services and CoPilot AI tools, following approximately $145 billion in spending last fiscal quarter.
Concluding the week's major tech reports on Thursday is Amazon. The performance of Amazon Web Services, which saw robust growth last quarter, will be a key focus. Additionally, the company's projected $220 billion in capital spending this year, influenced by memory prices, will be closely watched.
