As of Wednesday, October 28, 2026, US stocks displayed varied performance in anticipation of the Federal Reserve's interest rate decision and earnings from major companies like Microsoft and Alphabet. The Dow Jones Industrial Average and the S&P 500 both rose approximately 0.2%, while the Nasdaq Composite remained flat.
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This week has seen a notable uptick in tech sentiment, with the S&P 500 and Nasdaq achieving consecutive gains. A rally in semiconductor stocks was spurred on Tuesday by Broadcom's CEO, who secured a $63 billion financing deal for AI compute capacity. Gains continued Wednesday following SK Hynix's report of a 632% profit increase year over year, positively impacting the shares of other chipmakers including Micron and Samsung.
Investor focus is now squarely on the Federal Reserve, which is set to announce its interest rate decision at 2 p.m. ET. Market expectations indicate that the Fed will maintain current rates despite ongoing inflation concerns. Analysts and investors will pay close attention to Fed Chairman Kevin Warsh's subsequent press conference for indications of future rate hikes.
Earnings season is in full swing, with Microsoft and Alphabet scheduled to report on AI demand and capital expenditure plans later today. Microsoft’s report will follow its announcement of potential buyouts for 60,000 employees as part of operational restructuring due to AI developments. Other companies providing earnings updates include Ford, General Electric's Vernova division, T-Mobile US, eBay, Chipotle, and ServiceNow.
In other news, billionaire investor Nelson Peltz's Trian Partners has reportedly offered $1.4 billion for Wendy's, leading to a 15% surge in the fast-food chain's premarket shares. Analysts indicate that Wendy's has faced increasing competition and potential closures.
Robinhood issued a warning that its new AI trading agents could inadvertently execute unauthorized trades, raising the possibility of legal challenges. Shares for Robinhood dropped nearly 8% in premarket trading after the company reported weaker-than-expected third-quarter results.
SK Hynix showcased a remarkable 632% rise in profit and a 328% increase in revenue, signaling strong demand for AI-related products. The company anticipates the memory chip shortage will persist until 2030.
The Fed's upcoming interest rate decision comes amid mixed economic signals, with expectations for a 'hawkish pause' as inflation remains a concern. Historically, the stock market typically performs best from November through April, a trend noted by investment analysts.