Tech Rally Falters as Markets Await Key Earnings and Fed Signals

Equities pared gains in afternoon trading as investors digested mixed signals from Washington and corporate earnings. The Nasdaq Composite eked out a 0.2% advance while the S&P 500 hovered NEAR flatline, with Meta's 11% surge and Microsoft's $4 trillion market cap milestone failing to sustain broader momentum.

Big Tech's AI spending spree remains a focal point, with Meta's earnings beat and raised guidance overshadowing capital expenditure concerns. Microsoft similarly pared early 8% gains after its trillion-dollar valuation leap, as traders turned attention to impending results from Apple and Amazon.

The Fed's preferred inflation gauge showed stubborn price pressures in June, complicating rate cut expectations. Powell's neutral stance during Wednesday's press conference created policy uncertainty, with dissent among governors reflecting internal divisions about the path forward.