Dow shows resilience ahead of Fed decision
The Dow Jones Industrial Average is standing out for its resilience amid recent Wall Street sell-offs, closing higher at about 52,361. The secret to its stability lies in the index's composition. It is far less exposed to the volatile semiconductor and AI-infrastructure segments and leans instead on fundamentally strong financial, industrial, and healthcare companies. The index is currently holding above a key technical support band around 52,100–52,140, as markets brace for the week's major macro events.
The big driver for the Dow's next move will be the FOMC meeting. Markets are nearly certain (about 90% odds) that the Fed will hold interest rates steady in October, while the probability of a December hike sits near 80%. Analysts warn that any hawkish language from the Fed chair could reintensify pressure on equity valuations, so traders should be ready to react quickly to the regulator's statements. Follow the link for more details.
Microsoft, Alphabet, and Amazon reports as ultimate stress test for AI sector
This week presents material risks for the tech sector: Microsoft and Alphabet report quarterly results on Wednesday, followed by Amazon on Thursday. Deutsche Bank calls these releases an "extraordinarily important test" of recent market concerns about the AI industry. Investors are now less focused on headline revenue and more on the companies' capex plans for AI infrastructure.
If the big tech names announce further large-scale spending without convincing signals of rapid monetization, we could see another broad wave of selling that would inevitably drag down even more conservative indices. Earnings season traditionally triggers sharp price moves, and traders looking to navigate heightened volatility in leading global stocks can use the InstaForex platform to manage exposure and execute quickly. Follow the link for more details.
Anthropic's IPO filing and Big Tech's multibillion debts keep AI sector on edge
Anthropic's official S-1 filing (the developer of advanced AI models) briefly restored local optimism, helping Asian tech indices gain about 0.7%. However, a broad rally failed to materialize: investors remain worried about massive new borrowing across the industry. In recent days, Meta announced plans to raise up to $97.5 billion, Broadcom arranged roughly $63 billion in financing to buy chips, and SpaceX signed equipment leases of about $40 billion. Huge debt loads and rapid cash burn in the race for AI leadership are feeding doubts over the timeline for returns on those investments.
Wall Street's next moves will be decided in the coming days. Traders are focused on the Fed meeting and quarterly reports from the main beneficiaries of the AI boom: Alphabet, Microsoft, Amazon, and Intel. Follow the link for more details.
Brent ignores diplomatic efforts, holds near $115.90
Commodity markets continue to weigh on global risk appetite. A diplomatic mission to Tehran, aimed at preventing a large-scale escalation in the Middle East, produced only a short-lived dip in oil prices. Brent soon recovered intraday losses to trade back near $115.90/bbl.
High energy prices remain a primary inflation driver that prevents the US Federal Reserve from easing policy rhetoric. Gold is attempting to stabilize around $4,005 per ounce after a tough trading week. Ongoing geopolitical uncertainty calls for heightened investor caution. Follow the link for more details.
