CNBC Daily Open: Capex is the number to look at amid Big Tech earnings

Group 1: Interest Rates - The U.S. Federal Reserve lowered interest rates by 25 basis points, but Chair Jerome Powell indicated that another cut in December is not guaranteed, impacting market sentiment negatively [1] Group 2: Big Tech Earnings - Alphabet, Meta, and Microsoft reported earnings that exceeded analyst expectations, with Alphabet's quarterly revenue surpassing $100 billion for the first time [2] - All three companies announced significant increases in capital expenditure (capex) for the upcoming years [2] Group 3: Capital Expenditure - Alphabet raised its capex estimate for fiscal year 2025 to a range of $91 billion to $93 billion, up from $75 billion to $85 billion, and anticipates a significant increase in capex for 2026 [3] - Meta increased the low end of its capex guidance for the year to $70 billion from $66 billion, with CEO Mark Zuckerberg expressing confidence in the profitability of larger investments [3] - Microsoft's capex for the fiscal first quarter reached $34.9 billion, exceeding the $30 billion estimate, with expectations for continued growth in fiscal 2026 [4] - The focus on artificial intelligence spending is expected to remain strong due to rising demand for AI services, alleviating concerns about a potential bubble [4]