Stock market today: Nasdaq wavers, Dow, S&P 500, rise as Fed holds rates steady in split vote
US stocks edged higher on a critical day for markets, as investors digested the Federal Reserve’s 10-2 decision to hold interest rates steady and earnings results from Microsoft (MSFT) and Alphabet (GOOG) loomed.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) edged roughly 0.1% and 0.2%, respectively. The tech-heavy Nasdaq Composite (^IXIC) wavered near the flatline.
52,484.82 +107.25 (+0.20%)
As of 3:03:45 PM EDT. Market Open.
^DJI ^GSPC ^IXIC
Investor attention turned toward the Federal Reserve’s interest rate decision, where the Fed voted to keep its funds rate unchanged, despite elevated inflation readings. Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook dissented, favoring a rate hike. Fed Chairman Kevin Warsh’s press conference will be closely watched for any signs of a hawkish bias. (Follow live updates from the meeting.)
Sentiment in the tech trade has markedly improved this week, with the S&P 500 and Nasdaq posting back-to-back gains. Semiconductor stocks drove the rally on Tuesday after Broadcom’s CEO negotiated with a consortium of banks to announce a $63 billion financing structure to build AI compute capacity.
They continued to gain on Wednesday after South Korean memory chipmaker SK Hynix (SKHY, 000660.KS) reported a 632% year-over-year profit increase. Micron (MU), Samsung (005930.KS), and other chipmaker stocks also rose.
Earnings season continues apace as two Big Tech giants and cloud leaders — Microsoft and Alphabet — deliver updates on AI demand and their capex plans after the bell. Microsoft’s report comes just after it offered buyouts to up to 60,000 employees as it tries to streamline operations amid the AI build-out.
Rounding out the earnings picture are Ford (F), GE Vernova (GEV), T-Mobile US (TMUS), eBay (EBAY), Chipotle Mexican Grill (CMG), and ServiceNow (NOW).
LIVE 15 updates
-
Warsh announces changes to FOMC meetings schedule starting next fall
Fed Chairman Kevin Warsh announced a change to the FOMC meeting starting next fall.
Warsh said eight meetings per year is the right number for the Federal Open Market Committee. But in 2027, one meeting will focus exclusively on broad monetary policy strategy with neither a vote on the Fed’s funds rate nor a policy statement.
The rest will be regular policy meetings. Warsh also expects that in 2028, policymakers will hold 2 meetings dedicated to strategy and 6 for setting policy.
“Getting policy right involves assessing near-term developments at timely, regular, and information-rich intervals,” said Warsh.
“But it’s equally important we reserve time and space as an intellectually diverse group for strategic deliberations for thinking anew about big questions, looking out over longer time horizons,” he added.
-
Federal Reserve votes to hold rates steady in 10-2 decision
The Federal Reserve voted 10-2 on Wednesday to hold interest rates steady in the 3.75% to 4% range following its two-day policy meeting.
Cleveland Fed President Beth Hammack and Fed Governor Lisa Cook dissented, favoring a rate hike.
Markets had widely anticipated the Fed would leave rates unchanged at this meeting, with a potential rate increase at its December meeting.
Investors now await remarks from Fed Chair Kevin Warsh, scheduled for 2:30 p.m. ET.
-
SpaceX stock is testing a key floor level after surviving its biggest share lockup expiration
Last Thursday, SpaceX took its worst one-day hit since early August, when its biggest share unlock yet freed up to 1.3 billion shares to trade. Roughly a week later, it’s back at the same floor, and the rest of the space trade has left it behind.
SpaceX (SPCX) shares were sliding again on Wednesday, along with nearly every space stock.
$140 has been SpaceX’s floor since the summer. It marked the top of the stock’s August trading range before a breakout, and it sits about halfway between the August low near $108 and the $172 ceiling that capped rallies in June and October.
That makes $140 support, a price where buyers have repeatedly stepped in. They did it twice this month, and the stock is back there again.
SpaceX is back at $140, halfway between its August low and the $172 ceiling that capped its June and October rallies · Yahoo Finance AlphaSpace -
US consumers look resilient despite higher prices for gas, Halloween candy, and more
Yahoo Finance’s Brian Sozzi reports:
There’s an old adage in investing that goes something like this: Don’t bet against the US consumer’s propensity to spend.
After all the excitement over the Anthropic (ANTH.PVT) IPO prospectus dropping this week, I think the Federal Reserve decision today will bring some focus back to the state of the economy and, by extension, some focus on how the US consumer is faring amid higher prices for gas, Halloween candy, medical expenses, and winter clothing, among other inflationary categories.
I would sum up what I am seeing from consumers right now as remarkable resilience.
Coca-Cola (KO) has pushed through commodity-based price increases, yet Coke Zero sales increased 16% in the third quarter. Though new Coke CEO Henrique Braun did sound a touch measured about the consumer in an interview on Yahoo Finance.
Read more here.
-
Ford Q3 earnings preview: Guidance boost in doubt
Ford (F) is scheduled to report third quarter results after the bell on Wednesday, Yahoo Finance’s Pras Subramanian reports:
Investors will be watching whether the automaker will hold or raise its full-year outlook again.
For the quarter, Ford is expected to report automotive revenue of $46.2 billion per Bloomberg consensus, with adjusted EPS of $0.41 on adjusted EBIT (earnings before interest and taxes) of $2.38 billion.
Last quarter, Ford raised its full-year adjusted EBIT guidance to $10 billion to $11 billion (prior guidance was $8.5 billion to $10.5 billion). It also lifted its adjusted free cash flow outlook to $6 billion to $7 billion.
Analysts see full-year adjusted EBIT of $10.52 billion, in the upper half of that range. Capital expenditures are expected at $9.9 billion, within Ford’s unchanged $9.5 billion to $10.5 billion range.
Last week, rival GMnarrowed its 2026 EBIT-adjusted guidance to $14.5 billion to $15.5 billion while raising its EPS outlook, andshares slid despite an earnings beat, with investors hoping for more.
-
This Nvidia chart shows why the AI compute shortage remains acute
Yahoo Finance’s Brian Sozzi reports:
This week has shown that the appetite to build out AI infrastructure and put it to use isn’t slowing down, contrary to market jitters.
Rental rates for older-generation Nvidia (NVDA) GPUs, known as Blackwell and Hopper, continue to rise, suggesting that the shortage of compute remains acute, BCA Research chief economist Peter Berezin pointed out (see chart below).
An acute shortage occurs when demand outstrips supply. “I think we are heading for an AI capex bust but probably not until 2028,” Berezin said.
BCA Research Read more here.
-
Natural gas emerges as key AI bottleneck, Anthropic S-1 filing shows
Yahoo Finance’s Jake Conley reports:
Access to power has emerged as one of the greatest bottlenecks for the AI build-out, with a particular focus on natural gas, which is cheap and abundant in the US.
Anthropic’s S-1 filing proves natural gas is “an AI vertical,” Melius Research managing director James West said.
“We know power is a constraint to AI and Anthropic’s S-1 filing did nothing to assuage that view,” West wrote to clients on Tuesday. “AI compute is a natural gas demand story.”
Power-intensive data centers are the backbone of the AI build-out. US electricity demand from data centers is expected to double from 2025 to 2027, per research from Goldman Sachs, after 20 years of roughly stagnant energy grid expansion in the US.
-
US stocks edge into the green at Wednesday’s open
US stocks were mixed at Wednesday’s open as investors looked ahead to the Federal Reserve’s interest rate decision and earnings from Microsoft (MSFT) and Alphabet (GOOGL).
The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose 0.3%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.4%.
52,484.82 +107.25 (+0.20%)
As of 3:03:45 PM EDT. Market Open.
^DJI ^GSPC ^IXIC
Tech stocks entered the session with renewed momentum after back-to-back gains for the S&P 500 and Nasdaq, while investors awaited fresh signals on AI demand from Microsoft and Alphabet after the bell.
The Fed is widely expected to leave rates unchanged at 2 p.m. ET, with Chair Kevin Warsh’s press conference closely watched for signs of how willing policymakers are to raise rates again.
-
Billionaire investor Nelson Peltz makes move to buy struggling Wendy’s
Nelson Peltz’s Trian Partners has reportedly offered $1.4 billion to buy the struggling fast food giant, according to the Wall Street Journal. Wendy’s shares rose 15% in premarket trading on the news.
Yahoo Finance’s Brian Sozzi reports:
After nearly two years of struggles competing with the likes of behemoths McDonald’s (MCD) and Yum! Brands’ (YUM) Taco Bell, plus upstarts such as Shake Shack (SHAK), Wendy’s is on the cusp of a large number of restaurant closures.
“With one of its largest franchisees filing bankruptcy in September (although contested by WEN given prior termination of franchise agreement), we think investors likely expect closures to tick higher than expected, but we admit visibility on our side remains somewhat limited and there could still be a range of outcomes,” veteran restaurant analyst Andy Barish warned in a recent note. “That said, given our view that there are likely additional franchise operators in the system facing challenges with leveraged balance sheets, higher interest rates and profitability pressures from higher beef, labor & build costs (like many others in QSR), we think it is prudent to moderate our development estimates and bake in more potential closures over the next 6-12 months, as the company works to strengthen its system.”
-
Robinhood warns its AI agents could make unauthorized trades, sparking legal disputes
Robinhood (HOOD) warned Wednesday that its new artificial intelligence agents could execute unintended trades and expose the online trading platform to new regulatory and legal risks.
Robinhood opened its platform to AI agents brought by customers in May, and began rolling out an in-app version last month. The company warned in its third-quarter regulatory filing that the expansion creates “greater reputational risk” as the technology reaches more investors.
In an interview last month, Robinhood said customers are responsible for trades executed by their agents. But the company now acknowledges that courts or regulators might not uphold its customer agreements that assign responsibility to its customers.
The new warnings were added in the risk factor section of the company’s 10-Q filing. Robinhood shares fell nearly 8% in Wednesday premarket trading after it reported weaker-than-expected third quarter profits Tuesday.
-
SK Hynix profit jumps 632%, memory chipmaker sees shortage lasting to 2030
US-listed shares of SK Hynix (SKHY) rose 8% in premarket trading on Wednesday, after the memory maker’s record profit and revenue quelled recent investor worries over the AI trade.
South Korean SK Hynix shares (000660.KS) jumped 10% while peer Samsung Electronics (005930.KS) gained 5%. US-based Micron (MU) also rose 2%.
The South Korea-based company reported a 328% jump in quarterly revenue to roughly $78.7 billion, while operating profit surged 632% to about $62.7 billion, delivering an 80% operating margin. Revenue and operating profit increased by 32% and 38%, respectively, from the previous quarter.
Growth was driven by surging AI data center demand, higher memory prices, and early shipments of HBM4, which SK Hynix expects to replace HBM3E as its mainstream product.
-
Fed expected to hold rates steady this week despite hot inflation — but signal they’re not done hiking
Yahoo Finance’s Jennifer Schonberger previews what to expect and look for in the Federal Reserve’s policy announcement and press conference on Wednesday afternoon:
The Federal Reserve heads into its interest-rate decision this week facing hotter inflation, keeping the meeting live even as markets widely expect the central bank to hold interest rates steady just days before the midterm elections.
Alan Blinder, a former Fed vice chair and a Princeton University economics professor, is expecting a “hawkish pause.”
Although Fed Chairman Kevin Warsh doesn’t favor telegraphing the central bank’s next move, Blinder said the moment calls for clarity.
“This is a perfect time for clear forward guidance that doesn’t quite say, but strongly hints, we’re pausing now, but we stand ready to raise again and even give a hint that the next meeting might be the next interest rate hike.”
-
The stock market’s best 6 months of the year start Monday
Yahoo Finance’s Jared Blikre writes:
The stock market’s favorite season starts Monday. For decades, November through April has beaten the rest of the year by a mile.
That’s the Halloween indicator, also called the “best six months” or “sell in May.” Buy stocks at the end of October, hold them through April, then step aside for the summer.
Yale Hirsch found the pattern in 1986. “You can divide the year into two sections and have practically all the gains in one six-month section and very little in the other,” his son Jeffrey Hirsch, editor in chief of the Stock Trader’s Almanac, wrote in the 2026 edition.
Since 1950, the Dow Jones Industrial Average (^DJI) has gained an average of about 7% from November through April, versus less than 1% from May through October, according to the Stock Trader’s Almanac. Put $10,000 into only the good half each year, and it grew to about $1.3 million. Put it into only the bad half, and it shrank to about $4,300.
Average S&P 500 price change, by the year each six-month stretch begins · Yahoo Finance -
Good morning. Here’s what’s happening today.
Economic data: FOMC rate decision; MBA mortgage applications, week ended Oct. 23 (-5.3% prior); Advance goods trade balance, September (-$130.5 billion expected, -$132.1 billion prior); Retail inventories, month-on-month, September (+0.2% prior); Wholesale inventories, month-on-month, September preliminary reading (+0.4% expected, +0.5% prior)
Earnings calendar: Alphabet (GOOG), Microsoft (MSFT), GE Vernova (GEV), KLA Corporation (KLAC), Amphenol Corporation (APH), ServiceNow (NOW), T-Mobile US (TMUS), UBS Group AG (UBS), Automatic Data Processing (ADP), Equinor ASA (EQNR), Phillips 66 (PSX), Vertiv Holdings (VRT), O’Reilly Automotive (ORLY), American Electric Power Company (AEP), Boston Scientific (BSX), TE Connectivity (TEL), Deutsche Bank (DB), Garmin (GRMN), eBay (EBAY), Honeywell Aerospace (HONA), United Microelectronics Corporation (UMC), Ford Motor Company (F), Carvana (CVNA), Biogen (BIIB), Chipotle Mexican Grill (CMG), GE HealthCare Technologies (GEHC), Raymond James Financial (RJF)
Catch up on some top stories you might have missed overnight:
Oil prices rise after attack on Saudi Arabian refinery reignites supply concerns
Wall Street lines up $21 billion in debt for Broadcom chip deal
Robinhood stock falls 7% after earnings miss despite record trading volumes
-
AI worries expose dollar’s hot-money problem
Reuters reports:
Investors have long treated the US dollar as a refuge when markets fall, but foreign money chasing returns from the AI boom could weaken that safe-haven role if the trade unwinds.
Foreign capital has poured in to US mega-cap equities, hyperscaler corporate bonds and power-grid infrastructure. That has made the dollar an increasingly crowded bet on American exceptionalism, backed by faster growth, higher yields and persistent foreign demand for US assets.
But if the AI narrative stumbles, the dollar’s safe-haven status could collide with its growing role as a risk-sensitive asset owned increasingly by price-sensitive investors. A sustained selloff in stocks could lead investors to sell US assets, potentially drowning out the safe-haven demand for the currency.
If the AI trade unwinds, “it’s not as clear the dollar benefits in the same way it would have done in the past,” said Dominic Bunning, head of G10 FX strategy at Nomura.