Investors will assess returns on artificial intelligence spending as Alphabet, Microsoft and Amazon report earnings this week around the Federal Reserve’s Oct. 28 policy decision.
The results follow losses for technology shares. The Nasdaq Composite’s Thursday drop was its steepest one-day fall since June, and the index lost 0.21% Friday, Reuters reported. Reuters also cited LSEG I/B/E/S data showing more than 100 S&P 500 companies had reported third-quarter results, with earnings growth tracking above 32% year over year.
Alphabet is set to release third-quarter results Wednesday before a 4:30 p.m. ET conference call. Microsoft plans to publish fiscal 2027 first-quarter results after markets close that day, followed by a call at 5:30 p.m. ET. Amazon’s third-quarter results call is scheduled for 5 p.m. ET Thursday.
The Federal Open Market Committee (FOMC) meets Tuesday and Wednesday, Oct. 27-28. The Fed calendar lists a policy statement for 2 p.m. EDT Wednesday and a news conference at 2:30 p.m. EDT. At its Sept. 16 meeting, the committee raised the federal funds target range by 25 basis points to 3.75% to 4%.
Reuters, citing LSEG data, said futures pricing late Friday, Oct. 23, put the chance of an October rate increase below 10%, with the odds of a December increase near 80%. Those figures reflect market pricing, not a commitment by the Fed.
Meta reported third-quarter revenue of $64.60 billion, up 26% from a year earlier. Its 2026 capital-spending outlook is $135 billion to $145 billion, including principal payments on finance leases, compared with a previous range of $130 billion to $145 billion. Meta’s release said AI initiatives may take longer to generate returns than its core business.
A July FactSet estimate put 2026 hyperscaler capital spending near $800 billion. Reuters said the investment is creating demand for AI suppliers; FactSet said the spending is squeezing hyperscalers’ free cash flow and increasing their reliance on outside financing. The Fed statement is due Wednesday, followed by Amazon’s call Thursday.
