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Big Tech earnings, Fed cuts rates, Trump-Xi meeting and more in Morning Squawk

1. Alphabet's shares surged 7% after exceeding revenue expectations. 2. Microsoft's shares fell 2% due to increased spending and an OpenAI loss. 3. Meta shares dropped 9% linked to a tax charge and Reality Labs loss. 4. Fed's rate cut is uncertain for future meetings, impacting market sentiment. 5. Trump's trade agreement with China reduces tariffs, positive for market outlook.

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FAQ

Why Neutral?

Mixed earnings results from major tech stocks balance bullish trade news. Historical parallels include cautious reactions despite stimulating economic policies.

How important is it?

The outlined earnings mixed with Fed comments shape immediate sentiment. Trade agreements present a glimmer of positive economic outlook.

Why Short Term?

Immediate market reactions stem from earnings and Fed statements, but long-term effects depend on sustained performance.

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