Finance

Major technology firms including Alphabet, Amazon, and Microsoft have significantly raised their capital expenditure forecasts for 2026, with estimates now reaching between $800 billion and $900 billion. While Alphabet reported a 63% surge in cloud revenue, investor skepticism remains as firms contend with a worldwide memory crunch and skyrocketing component prices for AI hardware.

The energy sector continues to outperform the broader market, following a first quarter where pure oil and gas producers saw average gains of 45%. Despite a slight pullback in crude futures on Friday due to potential diplomatic developments in the Middle East, sustained high prices are expected to continue boosting earnings for majors like ExxonMobil and Chevron throughout 2026.

The Federal Reserve held the federal funds rate steady at 3.50% to 3.75% during its most recent meeting, citing a resilient economy but noting that inflation remains above the 2% target. Officials have signaled that future adjustments could involve either hikes or cuts as they navigate the economic uncertainties caused by the ongoing closure of the Strait of Hormuz.