S&P 500 Braces for AI Earnings and Fed Decision Impact

The S&P 500 faces its most critical day as four AI hyperscalers—Alphabet, Amazon, Meta, and Microsoft, comprising 18% of the index—report earnings amid surging capex pressures. Wall Street anticipates muted growth: Alphabet revenue at $117.2B (EPS $2.62, -7% YoY), Amazon $188.9B (EPS $1.65, +3%), Meta $55.5B (EPS $6.74, +5%), Microsoft $81.3B (EPS $4.06, +17%). Hyperscalers spent $414B on capex last year, eyeing $700B this year, squeezing margins. The Fed's rate hold and Powell's comments at 2 p.m. ET could spark sharp moves higher or lower based on results and tone.