Major indices are all in the green, as Nvidia (NVDA) pushed further into record territory and the stock became the first company to surpass the $5 trillion in market capitalization.

Investors await The FOMC decision today at 2 PM EST, waiting to confirm bets on an interest-rate cut. Historically, Powell Fed days lead in early morning trading.

Four sectors are moving higher, with Energy (XLE) in the lead, getting a boost from oil prices moving higher. On the flip side, the defensive sectors of Consumer Staples (XLP) and Real Estate (XLRE) are lagging following several poor earnings reactions. Notably, Financials (XLF) is also lagging and led lower by Fiserv (FI) after they reported a double miss and cut guidance on earnings.

On the economic front, September Pending Home Sales declined 0.9% YoY in September, following a 3.8% increase in August. Notably, the South and Northeast saw an increase in sales of +0.9 and +0.5%, respectively.

Magnificent Seven Preview

The countdown is now on for earnings from the “Magnificent Seven,” with reports from Alphabet (GOOG/L), Meta Platforms (META), and Microsfot (MSFT) released after the bell today. Quarterly results from Apple (AAPL) and Amazon (AMZN) follow tomorrow.

Alphabet on average has had a slight pullback the week following earnings, but recent reports have started to buck the trend. Investors are closely watching updates on AI-driven cloud growth, YouTube ad revenue momentum, and any signals on capital allocation amid rising AI infrastructure spend.

Historically, Microsoft has edged higher in the week following earnings. Notably, just like Alphabet, the reaction trend has improved during the last two reports. Investors will be watching updates on Azure AI and cloud momentum, Copilot adoption and monetization progress. In addition to guidance on capex amid heavy AI infrastructure investment.

Meta Platforms is also reporting after the bell today. Out of the mag seven set to report, it has had the best historical reactions. Furthermore, the trend has noticeably accelerated over the past three reports. Investors are closely watching updates on AI-enhanced ad efficiency, reels monetization and engagement growth, and progress on Reality Labs and broader AI initiatives.