Global highlights for next week: Google, Microsoft and Amazon AI earnings to be revealed in quick succession, Fed meeting may set the tone for interest rates
Next week, three hyperscale cloud computing companies—Google, Microsoft and Amazon—will release their earnings, as the market is taking a more cautious view of all AI-related spending. The Federal Reserve, European Central Bank, Bank of Japan and others will successively announce their interest rate decisions. CME data show the market believes there is a 90% probability that the Fed will hold rates steady next week.
Body · AI translation
Main text
This week, the S&P 500 fell 0.47% and the Nasdaq Composite dropped 0.71%, both posting two consecutive weekly declines; meanwhile, the blue-chip Dow Jones Industrial Average rose 0.41% this week, its third straight weekly gain.
Meta's major spending commitment has investors beginning to worry about the state of the AI trade. Next week, three other hyperscale cloud computing companies—Google, Microsoft and Amazon—will report earnings.
Nick Giorgi, chief equity strategist at Alpine Macro, said more tech companies will report earnings next week, and the market is currently taking a more cautious view of all AI-related spending.
King Lip, chief strategist at BakerAvenue Wealth Management, said the earnings will determine whether this tech stock pullback is a buying opportunity or the prelude to a larger correction.
Meanwhile, the Reserve Bank of New Zealand, the Bank of Canada, the Federal Reserve, the European Central Bank and the Bank of Japan will successively announce interest rate decisions, with the market particularly focused on the Fed's future rate path.
CME's "FedWatch" tool shows the market currently sees a 90% probability that the Fed will hold rates steady next week.
Walter Todd, chief investment officer at Greenwood Capital, said he will closely watch whether Fed Chair Kevin Warsh reveals any clues about the future rate path at the press conference.
Todd said: "Will he say something that lets us judge what will happen in December? Because the market's current expectation is that there will be a rate hike in December."
Earlier this week, reports disclosed that the United States is sending a third carrier strike group to the Middle East and is working with Israel on a new round of military strike plans against Iran, preparing for possible action after the U.S. midterm elections on November 3.
Previously, Trump had said the United States would not resume large-scale military strikes against Iran before the midterm elections. But reports have continued to emerge that the United States is preparing for possible new action.
Overview of key overseas economic events next week (Beijing time):
Monday (Oct. 26): Germany's October IFO business climate index, the U.S. September Chicago Fed National Activity Index, the U.S. October Dallas Fed business activity index
Tuesday (Oct. 27): U.S. September durable goods orders month-on-month, U.S. August FHFA house price index month-on-month, U.S. September new home sales annualized, U.S. October Conference Board consumer confidence index, U.S. October Richmond Fed manufacturing index
Wednesday (Oct. 28): U.S. API crude oil inventories for the week to Oct. 23, the Reserve Bank of New Zealand announces its interest rate decision, the Bank of Canada announces its interest rate decision and monetary policy report, U.S. EIA crude oil inventories for the week to Oct. 23
Friday (Oct. 30): Japan's September unemployment rate, the Bank of Japan announces its interest rate decision and economic outlook report, eurozone third-quarter GDP year-on-year preliminary reading, Canada's August GDP month-on-month, U.S. third-quarter employment cost index quarter-on-quarter
Saturday (Oct. 31): St. Louis Fed President Musalem delivers a speech
Sunday (Nov. 1): Seven OPEC+ oil-producing countries hold their monthly meeting to set December production policy
(Source: Cailian Press) Middle of the main text Embedded advertisement