Dow Jones and Nasdaq 100 fall as earnings season and Fed decision loom

The Dow Jones and Nasdaq 100 fell sharply this week amid persistent concerns about the artificial intelligence sector, with the Nasdaq 100 dropping to 28,840, its lowest level since September 16 and about 8% below its yearly peak. The earnings season is the main market catalyst, with major Magnificent Seven companies like Amazon, Microsoft, Google, and Apple reporting results, which will signal whether AI spending continues. The Federal Reserve's interest rate decision is due Wednesday, with rates expected to stay between 3.75% and 4%, while oil prices surged to $117 Brent and $103 WTI on potential US attacks on Iran. Analysts warn of a divergence between AI spending and revenue, with Gartner predicting billions in impairment losses, while Intel faces uncertainty over foundry progress and pricing power. The Fed's decision follows cooling job growth of 29,000 positions, though inflation remains above 2% for five years.