The Google corporate office at The Hub building in Warsaw, Poland on Sept. 16th, 2025.
The news cycle barely stopped to breathe today.
First, Trump meets Xi.
U.S. President Donald Trump met Chinese leader Xi Jinping in South Korea on Thursday, during which he struck a 1-year rare earths agreement with China and lowered fentanyl-related tariffs on Beijing to 10% from 20%, effective immediately.
China, in return, will resume buying soybeans and other agricultural products from America, Trump added.
Second, interest rates.
The U.S. Federal Reserve lowered rates by 25 basis points, as expected by traders. But Chair Jerome Powell cautioned that another cut in December, which the market had been pricing in with more than 90% certainty, "is not a foregone conclusion."
Finally, Big Tech earnings.
While Alphabet , Meta and Microsoft reported earnings that beat analyst expectations, their capex stole the show. All three companies estimated they will outspend earlier projections, and capex growth in 2026 will likely outpace the rate this year.
The crux is that spending on artificial intelligence isn't going to slow down, at least for the next year, thanks to increasing demand for AI services. Fears of the dotcom bubble repeating can be deferred for now — even Powell suggested so.
That's a wrap for today. Breathe while you can — Apple and Amazon are up next.