Alphabet Selloff Drags Market Lower Ahead of Fed Meeting

The US stock market has seen a wobbly week, with major equity indexes posting weekly declines. This was largely due to steep slides in Alphabet's shares after its quarterly reports revealed an increase in AI spending plans.

Despite this stumble, the S&P 500 remains up over 8% for 2026. However, some market strategists have expressed concerns that the market feels 'very frothy' and investors are cautious ahead of upcoming corporate earnings announcements from tech giants like Microsoft, Amazon, and Meta Platforms.

The Federal Reserve's meeting next week will also be closely watched as it sheds light on interest rates. While the central bank is expected to hold rates steady, there are concerns that policymakers may need to raise rates more aggressively in response to rising oil prices and inflation fears.