US Stocks Diverge Ahead of Fed Call as Dow, S&P 500 Add 0.2%
Updated
Updated · Yahoo Finance · Oct 28
US Stocks Diverge Ahead of Fed Call as Dow, S&P 500 Add 0.2%
3 articles · Updated · Yahoo Finance · Oct 28
Summary
The Dow and S&P 500 each rose about 0.2% on Wednesday while the Nasdaq hovered near flat, leaving US stocks split before the Fed’s 2 p.m. ET rate decision.
Markets are bracing for the Fed to hold rates steady despite elevated inflation, with Chair Kevin Warsh’s press conference in focus for any hawkish signal.
Chip stocks extended this week’s rally after SK Hynix reported profit growth of 632% year over year, lifting Micron, Samsung and other semiconductor names.
After the bell, Microsoft and Alphabet are due to report on AI demand and capital spending, with Microsoft’s update coming after it offered buyouts to as many as 60,000 employees.
If the Fed stays put but sounds hawkish, which matters more for stocks now: interest rates, AI earnings, or the rising cost of funding AI infrastructure?
Can Microsoft and Alphabet prove AI spending is becoming profit, not just capex, as markets brace for the Fed and Big Tech earnings?
Is the chip rally signaling durable AI demand, or are complex financing deals and tight memory supply hiding bigger risks beneath tech’s momentum?