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Stocks Dip as Wall Street Braces for Fed and Tech Giants’ Results

Markets showed caution as investors faced a crucial combination of the Federal Reserve’s rate decision and major tech earnings reports.

The S&P 500 dipped 0.2% while the Magnificent Seven tech stocks fell 1.1%, with additional pressure from concerns about AI investments and competition from Chinese rival DeepSeek.

Investors remain particularly focused on potential signals about inflation from Fed Chair Powell, while tech giants face scrutiny over their AI spending returns amid slower growth projections.

Today the Fed is expected to pause rate cuts, with markets highly sensitive to any hawkish signals that could drive yields higher. The situation is further complicated by the tech sector’s projected slowest growth pace in two years and heightened scrutiny of AI investments, especially as the Chinese AI upstart DeepSeek demonstrates comparable capabilities at apparently lower costs.

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