Markets eye Fed decision as Big Tech earnings loom and Amazon plans another major round of cuts

A packed day for markets

U.S. markets headed into Wednesday with multiple cross-currents: a Federal Reserve policy announcement, a press conference from Chair Jerome Powell, and a high-profile wave of earnings from some of the country’s most influential technology companies. Futures tied to the S&P 500 pointed higher after the benchmark closed at a record the day before, while Nasdaq futures led gains as the tech rally stayed intact.

Bond yields held near recent levels, and traders continued to weigh what the central bank’s next move might look like after late-2025 rate cuts. Even if policymakers keep rates unchanged at this meeting, investors generally treat Powell’s remarks and the statement language as the true event: the tone can reshape expectations for the rest of 2026 by signaling whether officials think inflation risks are fading, whether the labor market is cooling, and how tight financial conditions should remain.

Fed decision and the spotlight on independence

The Federal Open Market Committee was scheduled to release its latest decision at 2:00 p.m. ET, followed by Powell’s press conference. Markets were broadly positioned for a hold, but they were also bracing for politically sensitive questions. Investors have been watching the interplay between the White House and the central bank, alongside discussion about how the Fed communicates its mandate amid pressure for more aggressive easing.

For many traders, the key is less the vote itself than any clues about the path ahead. A subtle shift in wording around inflation progress or job-market strength can move equities, the dollar and Treasury yields quickly. If Powell emphasizes caution and data-dependence, risk assets may interpret it as a signal that the bar for additional easing is high. If he highlights downside risks or slowing growth, the market could price in a faster path to lower rates.

Big Tech earnings: Tesla, Microsoft and Meta

After the closing bell, Tesla, Microsoft and Meta Platforms were set to report results, extending a season in which investors have rewarded firms perceived to be winning the AI and cloud race. For Microsoft, attention has centered on Azure growth and the scale of AI infrastructure spending. For Meta, investors have been focused on whether heavy capital expenditures can translate into durable revenue growth, improved ad products and a clearer payoff timeline.

For Tesla, the market has been parsing delivery trends and profit margins, but also listening closely for updates on autonomy and the timing of any broader robotaxi expansion. Any surprise in guidance can ripple well beyond one company, because these names are major weights in U.S. indexes and heavily influence overall market sentiment.

Gold climbs, bitcoin steadies

Commodities and crypto also stayed active. Gold futures pushed higher and continued making new highs, reflecting a mix of risk hedging, expectations about rates, and global demand. Bitcoin hovered near the $90,000 level after swinging lower overnight, underscoring how quickly speculative assets can react to macro headlines, regulatory chatter and liquidity conditions.

Amazon prepares more layoffs

In corporate news outside earnings, Amazon said it plans to cut about 16,000 jobs—another large round of reductions coming after recent restructuring steps. The company has pointed to the need to operate with fewer layers and move faster, while the broader tech sector continues to rebalance staffing after years of rapid expansion and now faces the added cost pressures of building and operating AI infrastructure at scale.

Nvidia and China: a recurring headline

Investors also kept an eye on developments around Nvidia’s H200 AI chips and demand from China. Reports indicated that Chinese authorities had cleared some large domestic tech companies to place orders, highlighting how quickly the global AI hardware supply chain can become entwined with geopolitics and export controls. For markets, the significance is straightforward: China remains one of the largest potential growth pools for high-end compute, and any shift in access can materially change revenue expectations for chipmakers and their suppliers.

Taken together, the day’s agenda left markets balancing three forces at once: the Fed’s message on rates, the pace of AI-driven spending and returns, and ongoing restructuring across the technology sector. With so many catalysts landing within hours, traders prepared for volatility even if no single headline proved decisive on its own.