Good News: Bad S&P 500 Earnings Are Playing Into the Fed’s Hand

Alphabet said advertising demand that helped swell its top line 50% in two years is starting to soften. Google parent’s shareholders, who saw $70 billion erased in a stroke, took a bath, with the Nasdaq 100 slumping 2.3% Wednesday. Google said advertising growth for its Google subsidiary was crimped by inflation. Amazon.com Inc. projected weaker sales for the holiday as it contends with cutting consumers cutting spending with consumers cutting consumers. Microsoft Corp. posted its weakest quarterly sales growth in five years, hurt by a strong dollar, which has surged in the wake of the Federal Reserve’s interest-rate hike in the U.S. The average punishment running north of 4% this earnings season, the worst in a decade. . . .