Alphabet And Microsoft Report Ahead Of Fed Rate Decision

U.S. stock futures hovered around both sides of the flatline as investors prepared for a raft of key tech sector earnings and a crucial Federal Reserve interest rate decision, according to YahooStocks5. Google-owner Alphabet and software giant Microsoft were scheduled to kick off major tech-sector earnings after the closing bell.

Tech Spending And Market Sentiment

Wall Street's main averages advanced in the prior session, with tech stocks powering a 1.18% jump in the Nasdaq Composite. Slew of recent artificial intelligence funding deals and Claude-maker Anthropic's IPO filing helped soothe jitters regarding massive debt-fueled spending on AI infrastructure. Alphabet, Microsoft, and Amazon are aiming to shell out as much as $600 billion in capital expenditures this year alone.

Meanwhile, South Korea's SK Hynix reported a sharp jump in quarterly operating profit, posting a surge of 632% versus a year ago to 83.33 trillion won and beating Bloomberg estimates of 77.5 trillion won. The memory chip giant outlined plans to return 100 trillion won to shareholders this year, sending its shares up over 10% in Seoul trade.

Federal Reserve Outlook

How investors view tech spending binges could also be influenced by the Federal Reserve's interest rate decision. The central bank was tipped to leave rates unchanged after lifting borrowing costs in September, though markets priced in a three-in-one chance of a rate hike at the final meeting of the year in December.

Key facts

• S&P 500 futures rose 10 points or 0.1%, Nasdaq 100 futures climbed 173 points or 0.6%, and Dow futures dipped 117 points or 0.2% by 04:02 ET.
• SK Hynix posted a third-quarter operating profit of 83.33 trillion won, surging 632% year-on-year.
• SK Hynix revenue spiked 328% to a record 104.615 trillion won while net income jumped 216% to 39.78 trillion won.
• Alphabet, Microsoft, and Amazon are targeting up to $600 billion in capital expenditures this year.