Big Tech earnings and Fed meeting test the fragile US stock rally
Reports from Alphabet, Microsoft and Amazon, plus Wednesday's Fed decision, could decide whether the tech pullback is a buying opportunity or a deeper correction, per Reuters.
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what happened
According to Reuters, US investors face a pivotal week, with quarterly reports from leading AI companies and a Federal Reserve policy meeting on Wednesday. Tech shares have weakened recently, and the Nasdaq Composite closed slightly lower on Friday, a day after its biggest daily decline since June. Results from Meta and Lam Research disappointed the market.
Alphabet and Microsoft report on Wednesday, and Amazon on Thursday. Investors will focus on capital spending guidance and on whether huge data center investments are paying off. Hyperscaler spending is expected to reach about $800 billion this year, but the market is less willing to tolerate outlays without clear returns.
Fed funds futures on Friday implied a less than 10% chance of a rate hike at this week's meeting, while markets leaned toward a roughly 80% probability of a hike in December. Investors are also watching the US midterm elections on November 3.
why it matters
The S&P 500 is up 11% in 2026, supported by strong corporate profits and AI spending. Weak results or a hawkish Fed signal could increase volatility, especially in technology stocks and Treasury yields.
market impact
US stocks and Nasdaq: hyperscaler results and the Fed decision set direction; Treasury yields weigh on tech
instruments
sources
- Earnings flood, Fed meeting will test rickety AI market rally — Reuters, 23 October 2026 at 21:12 UTC
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