Wall Street Breakfast The AI trade gets a pulse check this Fed week
18 snips
Oct 26, 2025 Five major tech companies are reporting earnings, with strong AI demand expected to highlight their results. A Fed rate cut appears nearly certain as softer CPI supports this view. Meanwhile, trade tensions are easing with China, but worsening with Canada over tariffs. Also on the radar is Novartis's potential buyout of Avidity Biosciences. With 87% of early Q3 results beating expectations, the market is poised for significant moves.
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Tech Earnings Trump The Fed
- Five Magnificent Seven firms' earnings will dominate market attention this week over the Fed decision.
- Strong AI demand and aggressive CapEx plans could validate a sustained tech rally into year-end.
Field Checks Signal AI Demand
- Dan Ives' field checks point to strong AI enterprise demand for Microsoft, Alphabet, and Amazon in the quarter.
- He argues tech stocks could rally another 7% if results convince investors this is 1996 not 1999.
Earnings Beat Rate Remains High
- So far 29% of the S&P 500 have reported Q3 with 87% beating profit expectations.
- Another 170 S&P companies report this week, increasing the odds of market-moving surprises.