In a bid to tackle persistent inflation, the Federal Reserve has announced its intention to significantly reduce quantitative tightening (QT), a monetary policy aimed at reducing the money supply. By selling off assets such as treasuries and government bonds, the central bank aims to tighten monetary conditions and raise interest rates to combat rising inflation levels.

Despite experiencing a slip in iPhone sales, tech giant Apple is expected to surpass expectations in its upcoming quarterly earnings report. Analysts remain optimistic about the company's performance, attributing potential success to factors beyond iPhone sales.

E-commerce behemoth Amazon has seen a surge in its stock, with shares rising by nearly 2.2% after reporting higher-than-expected revenue for the first quarter. The company's growth was driven by its Amazon Web Services (AWS) division and advertising. Bolstered by its strong sales performance, Amazon could potentially pose a formidable challenge to AI leaders such as Microsoft and Alphabet.

However, Super Micro Computer, which recently joined the S&P 500 index, experienced a decline of over 14% in its stock value. Despite reporting revenues of $3.85 billion, more than double that of the same quarter last year, the company fell short of Wall Street analysts' revenue expectations. Earnings per share exceeded expectations, coming in at $6.56 compared to the expected $5.78.

Pharmacy chain CVS Health witnessed a drop in its stock price to a three-year low as it grapples with rising healthcare costs. The company reported adjusted earnings per share of $1.31, falling short of the expected $1.69. While revenue rose by 3.7% to $88.4 billion, it fell below the expected $89.21 billion.

Starbucks disappointed investors as its latest earnings report revealed lower-than-expected revenue, earnings, and same-store sales growth. The coffee giant's net income for the quarter came in at $772 million, down from $908 million the previous year. Adjusted earnings per share were recorded at 68 cents, missing the expected 80 cents, while revenue amounted to $8.6 billion, falling short of analysts' expectations of $9.1 billion.

In the cryptocurrency market, Bitcoin continued its downward trend, falling below $58,000 as the month of May commenced. The digital currency entered into a bear market following its worst month in nearly a year and a half. The ongoing selloff occurred after the closely-watched "halving" event in April and ahead of the Federal Reserve's impending decision on interest rates. Despite the recent dip, Bitcoin remains up by approximately 30% since the beginning of the year, although it sits more than 20% below its record high of $73,803 set in March.

As the Federal Reserve takes action to combat inflation, investors await the outcomes of the upcoming earnings reports, keeping a close eye on the performance of companies like Apple, Amazon, Super Micro Computer, CVS Health, and Starbucks, while observing the volatility of the cryptocurrency market centered around Bitcoin.