Wall Street Braces for Fed Rate Decision Amid Oil Price Surge

A wobbly US stock market will take cues from a Federal Reserve meeting and a packed earnings schedule in the coming week.

The Fed is set to shed light on interest rates, with investors looking for hints about future rate hikes. Despite expectations of steady rates, there's uncertainty over whether policymakers might surprise markets with a more aggressive stance, particularly given rising oil prices due to escalating tensions in the Middle East.

Brent crude hit $100 a barrel on Thursday, fanning fears that inflation will remain above target. The central bank is expected to hold rates steady, but investors are bracing for the possibility of a shock rate hike, which BNP Paribas economists described as 'unrulable.'

The week's earnings slate includes tech giants Microsoft, Amazon, and Meta Platforms, which have driven market gains this year. However, their AI spending plans have also raised concerns about whether these investments will pay off.