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<\/p>\nThe Fed spooked the market this week about future rate cuts but big-tech earnings came in to save the day and keep the bulls running.<\/p>\n
Now it's time to look ahead with the 10 things you need to know:<\/p>\n
Markets got the 25 basis point rate cut they were expecting from the Fed this week… but Chairman Jerome Powell quickly threw some cold water on future expectations.<\/p>\n
In his press conference, Powell said another cut in December is \u201cnot a foregone conclusion.\u201d<\/p>\n
<\/p>\n
As of October 31, CME Group's FedWatch Tool shows just under 65% of traders now expect a 25bp cut at the December meeting.<\/p>\n
Amazon\u00a0<\/strong>(AMZN) shares shot higher on Friday after beating Q3 expectations across the board Thursday.<\/p>\n Here's a look at how the company's results compared to analysts' estimates:<\/p>\n In a statement, Amazon CEO Andy Jassy said that AWS is \u201cgrowing at a pace we haven\u2019t seen since 2022.”<\/p>\n \u201cWe continue to see strong demand in AI and core infrastructure, and we\u2019ve been focused on accelerating capacity \u2014 adding more than 3.8 gigawatts in the past 12 months” – Andy Jassy<\/p><\/blockquote>\n That seemed to temper market concerns about the company's cloud business which have weighed on the stock this year.<\/p>\n AMZN has been underperforming its MAG7 peers in 2025, up just 0.7% for the year as of Thursday's close.<\/p>\n One reaction to this week's big tech earnings seemed key to the future of the AI trade theme.<\/p>\n Meta Platforms\u00a0<\/strong>(META) tumbled as increased AI spending overshadowed strong Q3 results for the company.<\/p>\n The social media giant hiked its capital expenditure guidance for 2025 to a range between $70 billion and $72 billion vs $66 billion to $72 billion previously.<\/p>\n On the earnings call, CEO Mark Zuckerberg defended the massive spending.<\/p>\n \u201cIt\u2019s pretty early, but I think we\u2019re seeing the returns in the core business. That\u2019s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we\u2019re not underinvesting.\u201d -Zuckerberg<\/p><\/blockquote>\n This appears to be the first negative market reaction to big spending on AI… with companies previously being rewarded for such investments.<\/p>\n But maybe that's just a META thing…<\/p>\n Speaking at the APEC CEO Summit in South Korea on Friday,\u00a0Nvidia\u00a0<\/strong>(NVDA) CEO Jensen Huang said AI has reached a “virtuous cycle”.<\/p>\n \u201cThe AIs get better. More people use it. More people use it, it makes more profit, creates more factories, which allows us to create even better AIs, which allows more people to use it. The virtual cycle of AI has been designed, and this is … the reason why you\u2019re seeing the world\u2019s capex going so fast.\u201d -Jensen Huang<\/p><\/blockquote>\n Basically, demand creates more products, which creates more demand, and more products, and more demand, and more products, and so on.<\/p>\n Take a listen to Jensen's speech below:<\/p>\n\n
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<\/p>\n3. Is the AI Trade Unwinding?<\/h2>\n
4. Nvidia CEO: AI Is In A Virtuous Cycle<\/h2>\n