Fed Decision and Big Tech Earnings Set to Drive Markets

Global markets are bracing for a critical week as investors await major central bank decisions and a flood of corporate earnings, with the Federal Reserve's policy update on Wednesday taking center stage. The outcome is expected to influence trading across U.S. indices, which ended last week mixed. Asian markets were cautious, with Japan's Nikkei falling 0.8% to its lowest level since July 30, while European shares rose slightly on easing Middle East tensions. In the U.S., the Dow Jones gained 0.41% last week, but the S&P 500 and Nasdaq Composite fell 0.5% and 0.7%, respectively. Key earnings from Microsoft, Alphabet, and Amazon will test investor confidence in AI spending. The Fed is expected to hold rates steady, though inflation is projected to rise to 3.1% in the third-quarter GDP report due Thursday. Investors will also scrutinize Big Tech's capital expenditures, as Alphabet's 2027 spending is forecast to climb 52% to $305 billion, while Amazon's $220 billion AI investment plan pressures free cash flow.