Big Tech Earnings, Fed Decision Shape Turbulent Week

Wall Street navigated a volatile week as investors digested the Federal Reserve's latest interest rate decision, a barrage of Big Tech earnings, and renewed geopolitical tensions. The Dow Jones Industrial Average (DJI), Nasdaq Composite Index (IXIC), and S&P 500 Index (SPX) swung sharply throughout the week, with the Fed's unexpectedly hawkish stance and a surge in Treasury yields fueling Wednesday's massive selloff before a chip rally sparked a rebound. The 30-year Treasury yield hit its highest level since 2007, while rising oil prices tied to escalating Middle East tensions added to the volatility. By midday Friday, the major indexes were trading mixed, on track to notch weekly gains, though the S&P 500 and Nasdaq were headed for monthly losses.

Big Tech earnings dominated Wall Street's attention this week. Microsoft (MSFT) surged after topping quarterly earnings and revenue estimates, logging its best single-session gain since October 2008 and helping spark an AI-driven rally in semiconductor stocks. Meta Platforms (META), however, moved in the opposite direction after missing earnings expectations, as surging AI costs, weaker cash flow, and a disappointing full-year outlook weighed on the shares. Attention then shifted toward Amazon.com (AMZN) and Apple (AAPL), where investors reacted very differently. AMZN soared after stronger-than-expected quarterly revenue reinforced confidence in artificial intelligence spending, while AAPL moved sharply lower despite topping revenue estimates as weaker-than-expected services revenue overshadowed robust iPhone sales.

Outside of Big Tech, several stocks made headlines following earnings and company-specific catalysts. Johnson & Johnson (JNJ) climbed in record territory after reaching a $5.5 billion settlement, while Ford (F) rallied after the automaker posted an earnings beat and raised its outlook. On the downside, Teladoc Health (TDOC) tumbled after reporting disappointing revenue and lowering guidance, Reddit (RDDT) brushed off strong earnings, and Novo Nordisk (NVO) sank on disappointing late-stage trial results. Elsewhere, Corning (GLW) struggled as weak guidance weighed on AI infrastructure names.