Wall Street is witnessing a great divergence in big tech, rewarding companies like Alphabet and Amazon that can prove profitability from their massive AI spending while punishing Meta and Microsoft over concerns about their return on investment. This is happening as stubbornly high inflation complicates the economic picture, leading to a deeply divided Federal Reserve holding interest rates steady while some members signal a future rate hike may be necessary. The market's uncertainty is compounded by weaker-than-expected GDP growth and a surprise announcement from outgoing Fed Chair Jerome Powell that he will remain on the board as a governor.

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