The real focus is Fed Chair Kevin Warsh’s tone. With inflation still sticky and the job market weakening, the Fed is in a difficult position, and any hint of a December rate hike could push Treasury yields higher and put pressure on tech stocks.

Inflation is turning into a longer-lasting problem. A new Reuters poll shows economists have raised their 2027 inflation forecasts for 31 of 50 economies, mainly because oil has stayed above $100 a barrel since early October. Higher energy costs are now spreading into wider prices. 

In the stock market, US futures are flat as investors wait for the Fed and for Alphabet and Microsoft earnings after today’s close, which will be a key test of AI demand. On Tuesday, the S&P 500 rose 0.6% and the Nasdaq gained 1.18%, led by chipmakers after Broadcom announced $63 billion in Anthropic-linked financing. Meta’s $25 billion share offering also saw strong demand.

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