Stock Market Update

[BRIEFING.COM] The major averages continue to drift sideways near their unchanged levels as the market digests today's FOMC decision and subsequent comments from Fed Chair Kevin Warsh.

While stocks are little changed following Mr. Warsh's press conference, longer-dated Treasury yields are facing upward pressure. The 30-year bond yield, which is particularly sensitive to long-term inflation expectations, is up seven basis points to 5.38%. 

Attention will soon turn to another formidable batch of mega-cap earnings reports after the close, including results from Alphabet (GOOG 321.47, +4.64, +1.46%) and Microsoft (MSFT 529.26, -2.06, -0.39%), which could provide an important test of the market's renewed enthusiasm surrounding AI. Alphabet is trading higher ahead of its Q3 report, with investors looking for continued momentum in its Search and Google Cloud businesses. Google Cloud revenue surged 82% year-over-year last quarter, supported by robust AI demand, but the company's substantial infrastructure spending remains a key concern. Alphabet raised its FY26 capital expenditure outlook to $195-205 billion last quarter, making any updates to spending plans, cloud profitability, and free cash flow particularly important in tonight's report.