Tech Earnings and Rate Hike Fears Send Wall Street into Jittery Mode

The US stock market is expected to take cues from the upcoming Federal Reserve meeting and corporate earnings reports, particularly from technology companies. The Fed's decision on interest rates will be closely watched after oil prices surged due to escalating tensions in the Middle East. Brent crude hit $100 a barrel on Thursday.

Despite being up over 8% this year, the S&P 500 market feels 'very frothy' according to Kristina Hooper, chief market strategist at Man Group. Investors are on edge and may react negatively to any signs of imperfection in quarterly reports from AI hyperscalers like Microsoft, Amazon, and Meta Platforms.

The Fed meeting will be the second under new Chair Kevin Warsh, who has shunned forward guidance. The central bank is expected to hold rates steady, but investors will look for hints about future rate hikes in the policy statement and subsequent press conference.