CNBC Daily Open: Capex is the number to look at amid Big Tech earnings

The quality is coming successful accelerated and thick. Strap in.

First, involvement rates.

The U.S. Federal Reserve lowered rates by 25 ground points, arsenic expected by traders. But Chair Jerome Powell cautioned that different chopped successful December, which the market had been pricing in with much than 90% certainty, "is not a foregone conclusion."

His connection threw acold h2o connected the markets, sending astir stocks little and Treasury yields higher.

Next, Big Tech earnings.

Alphabet, Meta and Microsoft reported net that bushed expert expectations connected the apical and bottommost lines. Notably, Alphabet's quarterly gross topped $100 cardinal for the archetypal time.

And yet superior expenditure.

Capex is truly the large communicative here. Alphabet, Meta and Microsoft are saying they are going to walk overmuch much money.

Alphabet not lone raised its capex estimation for fiscal twelvemonth 2025 to a "a scope of $91 cardinal to $93 billion" from its earlier forecast of $75 cardinal to $85 billion, but is present expecting "a important increase" successful capex for 2026, according to concern main Anat Ashkenazi.

Meta hiked the debased extremity of its capex guidance for the twelvemonth to $70 cardinal from $66 billion. "Being capable to marque a importantly larger concern present is precise apt to beryllium a profitable thing" CEO Mark Zuckerberg said successful the net call.

And Microsoft's Chief Financial Officer Amy Hood said capex successful the firm's fiscal archetypal 4th came successful astatine $34.9 cardinal — higher than the $30 cardinal fig estimated successful July. The capex maturation complaint for fiscal 2026 volition besides surpass that successful 2025, Hood added.

The crux is that spending connected artificial quality isn't going to dilatory down, astatine slightest for the adjacent year, acknowledgment to expanding request for AI services. Fears of a bubble tin beryllium deferred for now.

That's it for the day. We each tin instrumentality a breather — astatine slightest until headlines look from U.S. President Donald Trump and China's Xi Jinping's gathering aboriginal successful the day.