Wall Street is facing fresh pressure as investors digest the Federal Reserve’s latest interest rate decision, new economic data and a mixed round of technology earnings. September’s PCE inflation report showed prices rising 3.6% year over year, while core inflation reached 3.1%, both remaining above the Fed’s 2% target.
The U.S. economy grew at a stronger than expected 3.4% in the third quarter, while weekly jobless claims edged lower, pointing to continued economic resilience. With the Fed holding rates steady, investors are assessing the outlook for December, as expectations of a potential rate hike gain traction.
Meanwhile, Alphabet shares are under pressure after disappointing quarterly profits, despite strong demand for its AI infrastructure. Microsoft delivered stronger results, with revenue climbing 19% and cloud growth reaching 48%, but both tech giants are committing significant capital to AI. Fintech TV correspondent Mark Payton reports from the Cboe trading floor in Chicago on what inflation, Fed policy and the rising cost of AI investment could mean for markets.