NEW YORK — US investors are heading into one of the most important weeks of the fall, with two major tests arriving at the same time.

First, earnings from tech giants Alphabet, Microsoft, and Amazon will show whether the massive spending on artificial intelligence is starting to produce real, sustainable returns. Second, the Federal Reserve's policy decision will signal where interest rates — and borrowing costs for businesses and households — are headed next.

Why AI is at the center

The AI boom has helped keep US growth resilient, lifted productivity hopes inside the Trump administration, and supported stock valuations. But economists remain divided: is the current economic shift mainly the result of White House policies on tariffs, taxes, and deregulation — or is technology doing most of the work?

Reuters reporting this week described the overall picture as mixed. US trend growth is still estimated at around 2%, constrained by an aging population and slower immigration, despite administration claims that growth could double.

What happens next

Add midterm-election uncertainty on November 3, and traders are bracing for volatility. Strong AI results plus a steady Fed could calm markets — disappointing earnings or a surprise rate signal could do the opposite.

Source facts: The Economic Times / Reuters, Oct 26, 2026