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Summary
Futures on the S&P 500, the index tracked by the SPDR S&P 500 ETF Trust (SPY), rose 0.13% to 7,669.0 points on Sunday evening after the index posted two straight weekly losses, according to Investing.com.
Disappointing results from Meta and Lam Research and wariness over heavy AI capital spending drove the tech selloff, according to Reuters.
Alphabet and Microsoft report Wednesday and Amazon on Thursday, while fed funds futures price less than a 10% chance of a Fed hike this week and roughly 80% odds of one in December, per Reuters.
Gotrade News - S&P 500 futures rose 0.13% to 7,669.0 points on Sunday evening, after the S&P 500 and Nasdaq posted two straight weekly losses on a tech selloff, as investors braced for a Fed decision Wednesday and earnings from Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN), according to Investing.com.
As of 19:40 ET, Nasdaq 100 futures rose 0.1% to 29,151.50 points and Dow Jones futures added 0.12% to 52,455.0 points, Investing.com reported. The two weekly declines in the S&P 500, the benchmark tracked by the SPDR S&P 500 ETF Trust (SPY), and in the Nasdaq Composite were driven mainly by a sell-off in tech and AI valuations, per the same report.
Meta Results and AI Spending Doubts Drove the Tech Selloff
Per Reuters, the Nasdaq Composite posted a slim loss on Friday, a day after its biggest daily drop since June. Quarterly reports from Meta and Lam Research disappointed investors, the news agency said, and Meta is one of the hyperscalers spending heavily on data centers.
Investors are wary of whether that pace of AI capital spending can last amid rising financing costs, with hyperscaler capex expected at about $800 billion this year, Reuters reported.
Investing.com added that doubts over returns on that spending have weighed on tech and AI valuations, while investors have also reacted to a brewing debt crisis among cloud providers. Reuters also cited spiking Treasury yields, higher energy costs tied to the Middle East conflict and the November 3 midterm elections.
"The market's just not giving the benefit of the doubt to companies that are spending a ton of money," Nick Giorgi, chief equity strategist at Alpine Macro, told Reuters.
Microsoft, Alphabet and Amazon Earnings Test the AI Trade
Alphabet and Microsoft report on Wednesday and Amazon.com follows on Thursday, according to Investing.com, which said investors expect the megacap results to shed light on the AI trade. Traders will watch for further margin dilution from AI infrastructure spending and for plans for more AI investment.
With more than 100 companies already through their third-quarter earnings reports, S&P 500 earnings for the quarter are on pace to rise more than 32% year over year, according to LSEG IBES data cited by Reuters.
Regular-session close on October 23, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
What Does the Fed Decision Mean for Stocks?
Markets widely expect the Fed to leave rates unchanged this week, so investors will be watching for hawkish signals given sticky US inflation that remains well above the Fed's 2% target, according to Investing.com. Expectations for a 25 basis point hike in December have risen rapidly in recent weeks, the outlet said, and Fed Chair Kevin Warsh's press conference after Wednesday's decision is expected to offer more guidance on rates.
According to the Federal Reserve's September 16 statement, the Committee raised the federal funds target range by a quarter point to 3.75% to 4.00% on a 12-0 vote, saying "inflation remains elevated" and that the move "will support a timelier return" to its 2% goal. Reuters noted that it was the Fed's first hike since 2023. Fed funds futures now imply less than a 10% chance of another hike at this meeting but roughly an 80% probability of one in December, Reuters reported, citing LSEG data.
The rate path below draws on the Fed's September statement and 2026 calendar, with market pricing from LSEG data cited by Reuters.
FOMC meeting
Outcome
Fed funds target range
Vote or market pricing
September 15-16, 2026
Raise 25 bp
3.75% to 4.00%
12-0
October 27-28, 2026
Decision due Wednesday
3.75% to 4.00% (current)
Less than 10% chance of a hike priced in
December 8-9, 2026
Upcoming
Not yet set
Roughly 80% probability of a hike priced in
When Is the Next FOMC Meeting?
This week's FOMC meeting runs October 27-28, and the next one is scheduled for December 8-9, according to the Federal Reserve's 2026 meeting calendar. December also brings a Summary of Economic Projections.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
