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This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Hello, this is Leonie Kidd with today's edition of Morning Squawk. The Anthropic effect is lifting the Nasdaq for a second day, after providing a boost to global technology stocks overnight. The Fed is also in focus, as predictions of a hawkish hold at its meeting this week will almost certainly pave the way for a hike in December. Happening now: Short-lived Investors look set to get a second day of gains from the tech sector, as the optimism around Anthropic's game-changing IPO announcement continues to support the sector. This comes after the announcement helped fuel a rally across AI-related stocks in Asia and Europe. Its blockbuster listing on the Nasdaq next month will test investors' appetite following the most significant moment of buyer's remorse for the AI space, after the debt-fueled capex super cycle triggered a rout in the AI darlings over the last few weeks. - Devil in the details: more than 300 pages of S-1 filing reveals a complicated governance structure, where everyday shareholders will have little voice against the founders. - Ripple effect: Anthropic's IPO will have a massive trickle-down effect. Competing for the market's attention – the Federal Reserve. Day one of the two-day meeting gets underway later today, with the policy decision due on Wednesday at 2 p.m. ET. - Why it matters: It's almost certain to be a hawkish hold, with the midterms just a week away but inflation still running hot. - Analysis: December is live, with markets pricing in a 90% chance of a hike, according to CMEFedWatch. Big movers: Earnings watch There are relatively muted premarket moves across Wall Street this morning, but some volatility across European stocks. A steep rise in third-quarter profit for HSBC failed to meet expectations, and conservative guidance sent shares sharply lower in London and Hong Kong. - Analysis: Investors had expected HSBC to make more hay while the hiking cycle sun shines, as well as benefit from aggressive cost-cutting measures undertaken by CEO Georges Elhedery. Novartis hiked its profit outlook early Tuesday, as the Swiss drugmaker said it achieved sales growth despite a challenging backdrop of generic competition. The stock is higher in Zurich. - CEO view: Novartis boss Vas Narasimhan told CNBC's Squawk Box Europe that he is confident in the group's improved guidance despite "the patent cliff, which is a fact of life in this industry." Earnings today: Planes and cans Here are the big earnings breaking this morning: Coca-Cola has hiked its earnings outlook despite weaker demand in North America. Shares have rallied 32% so far this year, outstripping the S&P 500's gains. - Looking ahead: this marks the third straight quarter that the drinks giant has hiked its full-year forecasts, sending the shares higher premarket. Boeing has just hit the wires, narrowing its third-quarter loss following stronger defense sales. - Exclusive: CNBC's Phil LeBeau will speak to CEO Kelly Ortberg during "Squawk on the Street" at 9am ET. Last month, he told investors that production is taking "a little bit longer" than expected to stabilize.4. The Election Economy: 7 days to go... There is just a week to go until the midterm election. - CNBC Survey: Find out what Republicans and Democrats fear most about one another with insight from this CNBC survey which could signal "total polarization." And Finally... Microsoft offers voluntary buyouts to 60,000 employees as AI leads to efficiency push Microsoft said Monday that it's offering buyouts to a wide swath of employees as it strives to balance a costly artificial intelligence infrastructure build-out with capital efficiency. The software maker announced a new voluntary exit offer for certain workers in the U.S., Canada, India and the United Kingdom at its experience level of 70 or below. Around 60,000 people are eligible, according to a person familiar with the matter, who asked not to be named while discussing an internal matter. The effort affects about 27% of Microsoft's total workforce of 223,000 people. — CNBC's Ashley Capoot, Jason Gewirtz, Amelia Lucas and Jordan Novet contributed to this report. John Melloy edited this edition.
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