US Stocks Face Earnings Peak and Fed Decision Next Week as AI Rally Is Tested

Oct. 24 — According to Reuters, US stocks will face the busiest week of this earnings season next week, with about one-third of S&P 500 constituents reporting results. Alphabet and Microsoft report on Wednesday and Amazon on Thursday, with markets focused on the three companies' capital expenditure guidance and returns on AI investment. Hyperscaler capital expenditure is expected to reach about $800 billion this year. The Federal Reserve will announce its rate decision on Wednesday; futures show a less than 10% probability of a rate hike at this meeting and about an 80% probability for December. Earlier, results from Meta and Lam Research disappointed investors, and the Nasdaq on Thursday posted its largest single-day decline since June.