world
Wall Street week ahead: Big tech earnings and Fed decision to test US stock rally
Big tech earnings and a Federal Reserve interest rate decision will test the recent US stock market rally.
Key points
- Alphabet, Microsoft, and Amazon will report quarterly results as investors evaluate the profitability of AI spending.
- The Federal Reserve is set to announce its interest rate decision on Wednesday.
- LSEG IBES data estimates that third-quarter earnings for S&P 500 companies will increase by more than 32% year-on-year.
Why it matters. These events could determine if the recent decline in technology stocks is a buying opportunity or the start of a deeper market correction.
The Federal Reserve will announce an interest rate decision this Wednesday in the US. Alphabet, Microsoft, and Amazon are scheduled to report quarterly results during a week where one-third of S&P 500 companies provide earnings. Nick Giorgi of Alpine Macro says investors are scrutinizing AI spending, while LSEG IBES data expects S&P 500 third-quarter earnings to rise over 32%.
Latest updates
Wall Street week ahead: Big tech earnings and Fed decision to test US stock rally
Wall Street faces a key week as Big Tech earnings, the Fed's rate decision and US midterm election concerns test the stock market rally and AI stocks. US stock investors are preparing for an important week as major technology companies report their quarterly earnings and the Federal Reserve announces its interest rate decision on Wednesday. Both events could test the strength of the recent US stock market rally.Investors have become more worried about the artificial intelligence (AI) boom after technology stocks fell sharply last week. The AI boom has been one of the biggest drivers of the US stock market's rise over the past four years, Reuters reported.The Nasdaq Composite, which tracks many major technology companies, ended Friday with a small loss. This came a day after the index recorded its biggest single-day fall since June. Investors were disappointed with the latest quarterly results from Meta Platforms and semiconductor equipment maker Lam Research.Meta is among the major technology companies spending heavily on building data centres to support AI services. Lam Research is a semiconductor industry company whose shares have benefited from the AI boom. The disappointing results from both companies have raised fresh concerns about whether investors will continue to support expensive AI projects, Reuters reported.Three other major technology companies — Alphabet, Microsof.