US Stocks Rise as Traders Await Fed Decision, Tech Giants Report AI Earnings

US stock markets showed positive momentum in pre-market trading as investors braced for the Federal Reserve's interest-rate decision. The central bank's stance on future rates is a key driver of market sentiment, with traders weighing the possibility of further hikes against a stable period.

Data suggests there's a 35% chance that the Fed may opt for a rate increase, which can influence market valuations and borrowing costs for companies. This uncertainty has been a major factor in recent market fluctuations.

The upcoming financial results from Microsoft and Meta Platforms are also carrying significant weight, with investors looking to see if billions of dollars spent on artificial intelligence infrastructure are translating into tangible earnings growth. This scrutiny comes as the semiconductor sector experiences volatility, with chipmakers like SK Hynix seeing their stock prices decline despite reporting strong profit growth.

Geopolitical developments, including rising oil prices due to tensions in the Middle East, have had a limited impact on global equity trading so far. The most important updates to monitor in the coming days will be the official statement from the Federal Reserve and management commentary from Microsoft and Meta regarding their AI-related capital spending.