Feds Meet Markets on High Alert for Inflation, AI Spending

This week is expected to be one of the most consequential in the quarter for U.S. markets, with several key events and releases that will shape investor sentiment.

The Federal Reserve's two-day policy meeting concludes on Wednesday, with markets expecting no changes to interest rates but a closer look at inflation pressures and economic growth.

Mega-cap companies such as Microsoft, Meta Platforms, Amazon, and Apple will report earnings, providing insight into their investments in artificial intelligence (AI) and whether they can turn AI infrastructure spending into sustainable revenue and profit margins.

The Philadelphia Semiconductor Index has been under pressure due to semiconductor weakness, while oil prices have fallen after the U.S. paused strikes against Iran, easing immediate concerns over inflation but leaving room for a potential surge in crude prices if tensions escalate.