The tech industry’s bailout backlash grows as the Fed’s harsh decision draws attention

Hello, this is Leonie Kidd from today’s Morning Squawk.

After boosting global technology stocks overnight, artificial effects are pushing the Nasdaq higher for the second day in a row.

All eyes are also on the Fed, as it is expected to remain hawkish at this week’s meeting, almost certainly paving the way for a rate hike in December.

Investors are poised to profit from the tech sector for a second day as optimism surrounding Anthropic’s innovative IPO announcement continues to support the sector. The announcement comes after the announcement spurred a rally in AI stocks in Asia and Europe.

The company’s blockbuster listing on the Nasdaq next month will test investor appetite after the most significant moment of buyer’s remorse for the AI ​​sector, after a supercycle of debt-fueled capital spending led to the downfall of AI darlings in recent weeks.

The devil is in the details: More than 300 pages of S-1 filings reveal complex governance structures in which everyday shareholders have little say over founders. Ripple Effect: Anthropic’s IPO has a significant trickle-down effect.

Competing for market attention is the Federal Reserve.

The first day of the two-day meeting begins later today, with policy decisions scheduled for Wednesday at 2pm ET.

Why it matters: The midterm elections are only a week away, but inflation remains hot, so a hawkish hold is almost certain Analysis: Markets are now pricing in a 90% chance of a rate hike in December, according to CMEFedWatch.

Pre-market activity has been relatively calm across Wall Street this morning, although there has been some volatility across European stocks.

HSBC’s strong third-quarter profit rise missed expectations, and conservative guidance sent shares plummeting in London and Hong Kong.

Analysis: Investors had expected HSBC to produce more hay during the sunshine of the hiking cycle and benefit from aggressive cost-cutting measures taken by CEO Georges Ergederi.

Earlier on Tuesday, Novartis said the Swiss drugmaker had achieved sales growth despite a difficult backdrop of generic competition and raised its profit outlook. Stock prices are higher in Zurich.

CEO view: Novartis boss Basu Narasimhan told CNBC’s Squawk Box Europe that he was confident in the group’s improved guidance despite the “patent cliff that is a fact of life in this industry.”

Here are the big gains announced this morning:

Coca-Cola raised its profit outlook despite weak demand in North America. The stock has risen 32% since the beginning of the year, outpacing the S&P 500’s gain.

Looking ahead: This is the third consecutive quarter that the beverage giant has raised its full-year forecasts, and its stock price rose in premarket.

Boeing is finally getting serious, narrowing its third-quarter loss thanks to strong defense-related sales.

Exclusive: CNBC’s Phil LeBeau speaks with CEO Kelly Ortberg on “Squawk on the Street” starting at 9 a.m. ET. Last month, he told investors it would “take a little longer” than expected for production to stabilize.

There is only one week left until the midterm elections.

CNBC Survey: Find out what Republicans and Democrats fear most about each other with insights from this CNBC survey that could show “complete polarization.”

Microsoft offers voluntary buyout to 60,000 employees, saying AI will improve efficiency

Microsoft announced Monday that it would offer buyouts to a wide range of employees to balance capital efficiency with building expensive artificial intelligence infrastructure.

The software maker has announced a new voluntary redundancy offer for certain workers below experience level 70 in the US, Canada, India and the UK.

Approximately 60,000 people will be affected, said the person, who requested anonymity because they were discussing an internal matter. The initiative will affect about 27% of Microsoft’s 223,000 employees.

—CNBC’s Ashley Capoot, Jason Gewirtz, Amelia Lucas and Jordan Novet contributed to this report.

John Meloy edited this version.