Wall Street Awaits Fed Decision Amid AI Earnings Frenzy

The US stock market is bracing for a pivotal week as investors await the Federal Reserve's latest policy decision and a slew of corporate earnings, particularly from tech giants driving the artificial intelligence (AI) boom.

Fed Chair Kevin Warsh will lead the central bank's meeting on Wednesday, where markets expect interest rates to remain unchanged, despite ongoing concerns about inflation.

The outcome of the Fed decision and quarterly results from major AI-focused companies like Microsoft, Amazon, and Meta Platforms are likely to determine the near-term direction of Wall Street after a volatile week.

Last week's earnings reports from Alphabet and Tesla weighed down US equities, with Alphabet's results unsettling investors due to its substantial AI spending. The Google parent announced another increase in its AI investments, raising questions about whether tech companies can generate adequate returns.