Wall Street barely reacted to the Federal Reserve’s decision to hold interest rates steady, which was widely anticipated, or to chairman Kevin Warsh’s press conference, where he declined to offer forward guidance outside a crisis. Attention shifted to third-quarter earnings: Microsoft was received favorably, Alphabet fell after hours on prospects for higher capital expenditure in 2027, and Oracle’s more muted outlook supported its shares and the broader AI trade; Amazon reports Thursday. Of the 163 S&P 500 companies reporting this week, they represent 36% of the index and 44% of its market capitalization, while earnings are growing by more than 25% for a fourth straight quarter, although revenues are beating forecasts by only 1.7%. The rebound is pronounced, with the Roundhill Neocloud ETF up more than 16% and the iShares Semiconductor ETF up more than 7%, while the S&P 500’s forward profit margin reached a record 16.8%. Higher yields and oil prices, the war with Iran and political uncertainty remain headwinds, even as some investors favor diversification into the equal-weight index, which has gained more than 13% this year.
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