Finance

Approximately 80% of S&P 500 companies have exceeded profit expectations for the first quarter of 2026, with overall earnings growing by roughly 31% year-on-year. While energy and industrial sectors face pressure from rising oil costs, technology and consumer discretionary segments continue to drive market performance.

The Federal Reserve kept interest rates in the 3.50% to 3.75% range during its latest session, though the decision saw a rare level of dissent among committee members. While some officials advocate for cuts to support growth, others remain concerned about energy-driven inflation and the stability of the labor market.

Major technology firms including Microsoft, Alphabet, and Meta have significantly raised their 2026 capital expenditure guidance to fund massive AI and cloud infrastructure buildouts. This aggressive spending, which totals hundreds of billions of dollars, has unsettled some investors worried about short-term margin pressure and the timeline for tangible returns.