Seeking Alpha·2025-10-31 17:25Federal Reserve Meeting - The Federal Reserve lowered interest rates by a quarter percentage point, which was widely anticipated, but the meeting revealed a divided stance among members regarding future policy directions [4][5] - There were two dissenting votes: one member advocated for a half percentage point cut, while another opposed any rate cut, highlighting internal conflicts within the Fed [5] - Inflation remains a concern, hovering around 3%, above the Fed's target of 2%, while signs of economic slowdown, particularly in the labor market, are emerging [5][6] Amazon and Layoff Concerns - Amazon announced it would cut 14,000 corporate jobs, with reports suggesting this number could rise to 30,000, raising concerns about the overall economy [6] - The layoffs reflect both short-term economic uncertainty and long-term structural changes due to AI potentially replacing human jobs [10][12] Earnings Reports - Meta reported strong earnings but faced a $16 billion tax charge, leading to an 11% drop in stock price, raising investor concerns about increased spending, particularly in R&D, which grew 36% year-over-year [21][23] - In contrast, Alphabet (Google) saw a 2.5% increase in stock price post-earnings, attributed to greater investor confidence in its spending strategies compared to Meta [25][26] Apple and Caterpillar - Apple is in a wait-and-see position, with its stock remaining flat after earnings, as investors anticipate the impact of the upcoming holiday season and new iPhone rollout [28] - Caterpillar reported a 17% growth in its energy and transportation equipment sector, driven by demand for components used in AI data centers, leading to a 12% increase in stock price post-earnings [31][30] Upcoming Earnings and Economic Indicators - Palantir and AMD are set to report earnings next week, with Palantir being highlighted as a significant AI play [34] - The government shutdown has resulted in the absence of the traditional jobs report, creating uncertainty in economic indicators [35] NVIDIA Milestone - NVIDIA became the first company to reach a market capitalization of $5 trillion, achieving this milestone in just 110 days, indicating rapid growth in the tech sector [37][38]