Big Tech Earnings, Powell Casts Doubt on Rate Cuts | Closing Bell

Jeffrey Rosenberg from BlackRock highlights a notable imbalance between the Federal Reserve's monetary policy and the current financial conditions. This observation, shared during his appearance on Bloomberg Surveillance, raises important questions about how these dynamics could impact the market and investors moving forward.

Rishi Jaluria from RBC Capital Markets highlights that Microsoft's recent earnings report indicates a robust demand for AI, contrary to expectations of a slowdown. With total revenue rising by 18% to $77.7 billion and profits at $3.72 per share, this news is significant as it suggests that the tech giant is thriving in a competitive market, reinforcing the importance of AI in its growth strategy.

Federal Reserve Chair Jerome Powell has advised investors to be cautious about expecting a rate cut in December, emphasizing that it's not guaranteed. This comes after the Federal Open Market Committee's recent decision to lower the federal funds rate target range to 3.75%-4%. Powell's remarks are significant as they highlight the Fed's careful approach to monetary policy amidst economic uncertainties, influencing market expectations and investor strategies.

Etsy has announced the promotion of Kruti Patel Goyal to CEO, succeeding Josh Silverman after eight years in the role. This leadership change is significant as it reflects Etsy's commitment to growth and innovation in the online marketplace. Goyal's experience as Chief Growth Officer positions her well to drive the company's future strategies, making this a pivotal moment for Etsy and its stakeholders.

Nvidia is stepping up its game in the world of artificial intelligence by significantly increasing its investments in AI startups. This move positions Nvidia as a key player in venture capital, influencing the future of technology and innovation. With experts like Seth Fiegerman from Bloomberg discussing these developments, it's clear that Nvidia's backing could lead to groundbreaking advancements in AI, making this news particularly exciting for tech enthusiasts and investors alike.

Character.AI has decided to ban minors from interacting with its chatbots, a move that comes in response to increasing pressure from lawmakers and various lawsuits. This decision is significant as it prioritizes the safety of children online, ensuring that young users are protected from potentially harmful interactions. By taking this step, Character.AI is setting a precedent in the tech industry, highlighting the importance of responsible AI usage.

Nvidia is set to generate an impressive $500 billion from AI infrastructure in the US over the next four years, significantly exceeding previous forecasts. This revelation, shared by Vlad Galabov from Omdia, highlights a $100 billion opportunity that could reshape the tech landscape. Such growth not only underscores Nvidia's pivotal role in the AI sector but also signals a booming market that could benefit various industries and drive innovation.

KPMG Chief Economist Diane Swonk has highlighted the challenges ahead for the Federal Reserve following its recent decision to cut interest rates by a quarter point. During her appearance on Bloomberg Surveillance, she noted that this move reflects a 'dueling mandate' for the Fed, indicating potential tensions in balancing economic growth with inflation control. This situation is significant as it could impact monetary policy and the broader economy, influencing everything from consumer spending to investment strategies.

In the latest market close coverage on Bloomberg, the focus was on the earnings reports from major tech companies and comments from Federal Reserve Chair Jerome Powell, who expressed skepticism about potential rate cuts. This is significant as it reflects the ongoing economic landscape and the challenges that big tech firms face amidst fluctuating interest rates, impacting investor sentiment and market dynamics.

After a recent global outage affecting Microsoft 365 and Azure, which experienced DNS issues similar to those seen in a previous AWS outage, the websites have now come back online. This incident highlights the vulnerabilities in cloud services and the importance of reliable infrastructure for businesses and users who depend on these platforms.

Daniel Flax from Neuberger Berman shared insights on Meta Platforms' earnings and future spending plans during an appearance on Bloomberg Markets: The Close. He highlighted that while Meta anticipates a significant rise in expenses in 2026 due to investments in data centers and AI equipment, the market seems to be responding positively. This is important as it indicates investor confidence in Meta's long-term strategy and its commitment to innovation in technology.

Chipotle has lowered its sales forecast for the third time this year, reflecting a significant shift in consumer behavior as more people are choosing to dine out less. This news is particularly concerning as it led to a nearly 14% drop in the company's shares after hours, indicating investor anxiety about the brand's future performance. Understanding these trends is crucial for both consumers and investors, as they highlight the changing landscape of the dining industry.

In a significant development, Trump announced that South Korea has received approval to construct a nuclear-powered submarine. This move is crucial as it enhances South Korea's military capabilities and reflects a shift in regional defense strategies. The decision underscores the growing importance of advanced military technology in maintaining security in the Asia-Pacific region.

Bio-Rad's shares have taken a hit despite the company reporting better-than-expected earnings for the third quarter. This decline raises concerns among investors about the company's future performance and market conditions, highlighting the volatility that can occur even when a company meets or exceeds earnings expectations.