Wall St Week Ahead: Investors Look to Earnings Amid Fed Silence

What happened

Investors focus on corporate earnings, particularly AI infrastructure spending, to offset risks. The S&P 500 hit a record high on Thursday. About 85% of S&P 500 companies reporting beat estimates, with profits up 32.7% excluding Alphabet and Amazon gains. Big Tech's AI spending is set to exceed $700 billion this year from $400 billion in 2025.

Why it matters

With policymakers silent, earnings provide the primary guidance for markets. Strong results and positive guidance suggest continued economic activity, countering concerns about inflation and geopolitical tensions.