Wall Street's Earnings Crunch Meets Fed Decision

Wall Street enters the busiest week of earnings season as the AI trade faces heightened scrutiny, with Alphabet, Microsoft, and Amazon reporting amid concerns over capital spending and returns. Roughly one-third of the S&P 500 reports this week, with about 83% of companies beating expectations and earnings growth above 30% year on year. Investors now focus on capex intensity and cash flow rather than headline beats, while the Fed is expected to hold rates Wednesday. Oil above $100 and Treasury yields below 5% add pressure, with the market testing whether the pullback is a healthy purge or a shift in sentiment. The Fed's December path and hyperscaler spending plans will likely determine the week's direction.