Stock market faces midweek double whammy as Fed decision collides with megacap tech earnings. Here’s what to watch.

Core Viewpoint - The upcoming week is critical for the stock market as it faces a significant Federal Reserve interest-rate decision alongside major technology companies reporting earnings, all amid a prolonged government shutdown [1][2]. Market Performance - U.S. stocks have experienced a record-setting rally in October, with the Dow Jones Industrial Average rising 1.7%, the S&P 500 increasing by 1.5%, and the Nasdaq Composite advancing 2.4% [2]. Federal Reserve's Interest Rate Decision - The Federal Open Market Committee (FOMC) is expected to lower policy rates by a quarter-point to a range of 3.75% to 4%, with investors closely monitoring the decision due to the lack of key economic data [3][4]. - The unusual nature of this week's Fed decision stems from uncertainty regarding both the U.S. economy's future and the economic conditions leading up to the meeting [4][5]. - Analysts suggest that the Fed's decision may reflect a cautious stance towards growth risks, indicating a desire to mitigate potential economic slowdowns [5]. Market Reactions and Expectations - Some market analysts express skepticism about the Fed meeting's impact on markets, noting that recent economic data has not significantly changed the Fed's short-term interest rate trajectory [6]. - Any alterations in the policy statement or comments from Fed Chair Jerome Powell regarding inflation or growth could influence market expectations for future rate cuts, extending into 2026 [6].