Federal Reserve Chair Jerome Powell kept the focus on inflation, not earnings. He reiterated the long-term 2% inflation target and said near-term expectations had risen because of tensions tied to Iran. Powell also said the recent jump in oil prices is clearly lifting inflation in the short run, while uncertainty around the conflict adds risk. The market read that as a sign rates are likely to stay unchanged for a while, though he stopped short of signaling a fresh rate hike.
That message outweighed a wave of strong corporate reports. The article says the Fed’s hawkish stance is, for now, having a larger effect on market pricing than the earnings beats from major technology companies. A short-term rally is still possible in the coming hours, but BTC and large-cap tech names are being judged through the same macro lens.
Amazon posts $181.52 billion in sales, AWS grows 28%
Amazon delivered one of the strongest reports in the group. Earnings per share came in at $2.78, well above the $1.62 consensus estimate. Net sales reached $181.52 billion, topping the expected $177.23 billion. Operating income was $23.85 billion versus a projected $20.75 billion, and the operating margin landed at 13.1%, ahead of the 11.7% forecast.
AWS net sales rose to $37.59 billion, up 28% excluding currency effects. Amazon said the sales trend reflects continued investment in artificial intelligence. For the next quarter, the company sees net sales in a range of $194 billion to $199 billion and operating income between $20 billion and $24 billion, both ahead of consensus expectations.
Alphabet, Microsoft, and Meta show strength in AI, cloud, and ads
Alphabet reported $109.90 billion in revenue, above the $107.1 billion estimate. Revenue ex-TAC reached $94.67 billion, and operating income came in at $39.70 billion. Google Services and Search both beat expectations, while advertising revenue totaled $77.25 billion. YouTube ad revenue, at $9.88 billion, was slightly below the $9.97 billion forecast, but Google Cloud climbed to $20.03 billion, ahead of estimates. Alphabet described the period as the strongest quarter yet for its consumer AI plans.
Microsoft also beat expectations across the board. EPS was $4.27 compared with a $4.03 forecast, revenue came in at $82.89 billion versus $81.46 billion expected, and operating income reached $38.40 billion. Cloud revenue totaled $54.5 billion. Azure and other cloud services grew 39% excluding currency effects, beating the expected 38.2%, while Microsoft 365 commercial cloud revenue rose 19% and consumer cloud revenue increased 33%.
Meta reported EPS of $10.44 and revenue of $56.31 billion, above the $55.51 billion forecast. Ad revenue reached $55.02 billion. Family of Apps generated $55.91 billion in revenue, with segment operating income at $26.90 billion. Overall operating income increased 30% year over year. Reality Labs posted $402 million in revenue, slightly below forecasts, with operating losses of $4.03 billion, though that loss was smaller than expected. Meta guided next-quarter revenue to $58 billion-$61 billion and lifted its annual capital expenditure outlook to $125 billion-$145 billion.
Qualcomm and eBay beat, but Qualcomm’s guidance trails estimates
Qualcomm reported adjusted EPS of $2.65, ahead of the $2.55 estimate, and adjusted revenue of $10.60 billion, above the expected $10.56 billion. Semi-capital expenditures were $1.08 billion. The weaker part of the report was guidance: Qualcomm expects next-quarter adjusted EPS of $2.10 to $2.30, below the $2.43 consensus, and revenue of $9.2 billion to $10 billion, under the $10.26 billion estimate.
eBay also came in ahead of forecasts. Adjusted EPS from continuing operations was $1.66 versus the expected $1.58, while revenue reached $3.09 billion against a $3.03 billion estimate. Gross merchandise volume was $22.2 billion, and active buyers totaled 136 million, both slightly better than projected. For the next quarter, eBay expects adjusted EPS of $1.46 to $1.51 and net revenue of $2.97 billion to $3.03 billion, broadly in line with consensus.
Macro pressure still sets the tone for BTC and equities
The earnings slate showed resilience across cloud, advertising, and AI-driven businesses, but market attention remains fixed on inflation and rates. The article notes that investors are watching the short-term reaction closely, especially as inflation pressure stays elevated. That matters not only for major U.S. equities, but also for crypto assets.
With Powell’s comments and these closely watched earnings now out, the next few hours and days are set to determine near-term direction. For BTC, the immediate test is less about individual company results and more about whether macro conditions continue to cap risk appetite.