AI Disappointments Dampen Tech Optimism, Fed Watch Looms

Tech earnings optimism wanes as AI-related disappointments weigh on investor sentiment ahead of the Fed decision. Amazon's strong cloud sales growth couldn't offset AI letdowns in other tech areas, while Super Micro and AMD also fell short on AI-related expectations.
Non-tech sectors also saw earnings misses, with Starbucks, Yum! Brands, and CVS reporting sales declines, indicating consumer caution. This, coupled with a risk-off mood, suggests last week's market recovery may have been temporary.
Expect heightened volatility post-Fed decision, as the options market indicates a significant move in the S&P 500, the most in nearly a year. Traders are bracing for potential market swings.