Tech Futures Edge Higher as Markets Brace for Fed Decision and Big Tech Earnings

US equity futures showed modest gains on Wednesday, with the Nasdaq leading the way as investors prepare for a high-stakes day of macroeconomic and corporate catalysts. This follows a weaker session where the Nasdaq fell 0.9% and the Russell 2000 dropped 1.2%, largely driven by concerns over slowing growth at OpenAI and its ripple effect on semiconductor stocks. Market attention is now split between the Federal Reserve and the technology sector. The Fed is widely expected to leave interest rates unchanged, but traders are closely monitoring Jerome Powell's commentary on inflation. This is particularly critical as geopolitical friction between the US and Iran has pushed WTI crude prices up 3.3%, surpassing the $103 per barrel mark, potentially adding inflationary pressure. After the closing bell, the market will face a major volatility event as Alphabet, Amazon, Meta, and Microsoft report their quarterly results. These reports are expected to set the tone for the broader market in the coming days. Analysts are specifically scrutinizing the sustainability of the AI trade. A key point of contention is whether the projected $625 billion in AI capital expenditures for 2026 is justified by the current pace of customer growth. Investors are questioning if hyperscalers are overspending in a race for dominance without a corresponding increase in immediate revenue.