Alphabet fell short of expectations in its latest quarterly report, sparking renewed doubts about the returns from its substantial AI investments. Meanwhile, Microsoft outperformed forecasts in cloud revenue, demonstrating that its AI spending is yielding results. Oracle also provided a positive outlook, projecting $30 billion in free cash flow for fiscal 2029, a stark contrast to investor expectations of negative figures.
The Federal Reserve maintained interest rates but reaffirmed its focus on curbing inflation. However, Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, advocating for a modest rate hike. Additionally, the Fed announced changes to its meeting schedule, with rate-setting votes planned for seven of eight meetings next year.
The US Department of Homeland Security imposed restrictions on imports from Chinese genomics firm BGI Group and two related companies, citing forced labor concerns. Separately, the Commerce Department slapped tariffs of around 260% on certain Chinese trailers, citing harm to domestic industries.