Fed Decision Looms as Tech Giants Report Earnings Amid Rate Hike Fears

The US stock market is bracing for a potentially rocky week ahead as investors await the Federal Reserve's monetary policy decision and a slew of corporate earnings reports, particularly from technology companies.

Ahead of the Fed meeting on Wednesday, major equity indexes are tracking weekly declines, with the S&P 500 down 8% year-to-date despite its overall positive performance.

The market's sensitivity to any signs of imperfection was highlighted by Alphabet Inc.'s disappointing quarterly report, which sparked a negative tone ahead of upcoming earnings from other AI 'hyperscalers' like Microsoft and Amazon.com Inc.

Brent crude prices have surged above US$100 per barrel due to escalating tensions in the Middle East, fueling fears that the Fed will need to be more aggressive in raising interest rates to control inflation.