Megacap tech earnings in Q2 have investors looking past the Fed decision

This is one of the biggest weeks of the year for technology company earnings, to the point that the Federal Reserve’s interest-rate decision could be something of an afterthought.

While higher rates have been the primary headwind to tech stocks this year, investors say the policy path is now priced in, especially since consumer inflation expectations are falling, suggesting the Fed may be able to be less hawkish.

And two titans of the tech industry are giving investors cause for optimism: Microsoft late Tuesday gave an encouraging sales forecast, while Google parent Alphabet reported resilient ad revenue. Futures contracts on the tech-heavy Nasdaq 100 Index rose 1.4 per cent in premarket trading.