Markets Hold Steady Ahead of Federal Reserve Decision; Chip Stocks Rise Following SK Hynix Profit Surge

Attention was focused on domestic monetary policy as the Fed concluded its two-day meeting. Analysts widely expect the central bank to maintain interest rates in the range of 3.75% to 4%. Following a quarter-point hike in September, CME's FedWatch tool indicated a 90% probability that rates would remain steady, although some believe Chairman Kevin Warsh may hint at potential future increases. The announcement regarding interest rates will be made at 2 p.m. ET.

"Wednesday's meeting is likely to serve as an update rather than a decisive action, with continued hawkish language expected from Chair Warsh," commented Glen Smith, chief investment officer at GDS Wealth Management.

In other news, oil prices increased, and Treasury yields rose following this anticipation, with the 10-year note yield last at 5.024% and the 30-year bond yield at 5.326%.

Stifel downgraded Whirlpool Corporation from hold to sell, citing market share concerns in the U.S. and predicting accelerating losses due to increased prices from inflation, competitive pressures, and changing consumer preferences. As a result, the firm lowered Whirlpool's target price from $30 to $20, indicating a potential 27.1% decline from Tuesday's close. Shares dropped over 2% in late morning trading.

Visa announced stronger-than-expected fiscal fourth-quarter earnings, reporting adjusted earnings of $3.48 per share, a 17% increase year-over-year. Net revenue rose by 13% to $12.1 billion, with significant growth in payment volumes.

Wendy's stock surged as much as 16% during premarket trading after reports revealed that Trian Management, led by Nelson Peltz, offered to buy the chain for $1.4 billion.

In contrast, Robinhood shares fell over 6% following the announcement of third-quarter earnings, where net income dropped to $468 million from $556 million the previous year, missing analysts' expectations.

The Cheesecake Factory also saw its shares decline despite reporting a third-quarter profit of $1.02 per share on revenues of $1.03 billion, which exceeded market expectations.

Mortgage application volume rose by 3.4% last week as mortgage rates retreated for the second consecutive week, with average rates on 30-year fixed mortgages falling to 7.37%.

European stocks were mixed in early trading, with the pan-European Stoxx 600 down slightly, amid a backdrop of mixed earnings results from the region.

In Asia, South Korea's Kospi surged 6.6% after SK Hynix reported record quarterly profits, announcing plans to return around $25 billion to shareholders. Japan's Nikkei gained over 1%, while Australia's S&P/ASX 200 ended flat.