The US stock market continued to rise on October 27, with the tech-heavy Nasdaq Composite Index leading the major stock indices. Buying in AI-related stocks pushed the market higher.
Buying returns to AI-related stocks
Expectations surrounding the IPO of AI development company Anthropic grew, and semiconductor stocks rose for the third consecutive trading day.
NEW YORK: Wall Street stocks finished higher Wednesday (Oct 28) after a choppy session, digesting a status quo Federal Reserve decision as markets monitored the latest earnings from US tech giants.
The Fed, as expected, held interest rates steady, citing the need for more data in the fight against inflation despite persistently elevated pricing pressure.
» Read more about: US stocks eye big tech earnings as Fed holds rates steady »
Raoul Pal believes the world’s biggest technology companies can keep spending on artificial intelligence almost indefinitely. However, their latest earnings show how expensive that ambition is becoming.
Alphabet shares plunged after Wednesday’s earnings, as AI investments pushed quarterly free cash flow to negative $9.07 billion. Microsoft shares rose after reporting $18.6 billion in positive free cash flow.
» Read more about: Raoul Pal Says AI Spending Has No Ceiling. Are Tech Stocks in Danger? »
Fed decision days often spark a major swing in the S&P 500 (SNPINDEX:^SPX), as interest rates play a big role in stock valuations.
However, Wednesday’s announcement, which held the Fed funds rate steady at 3.75%-4%, didn’t do much to move markets. The S&P 500 briefly jumped 30 points or 0.4% when Fed Chair Kevin Warsh took the podium around 2:30 ET.
Companies developing advanced semiconductors, building data centers, and creating artificial intelligence (AI) applications are attracting historic levels of investment capital. However, some valuation indicators suggest that investors might be getting carried away.
The Shiller cyclically adjusted price-to-earnings (CAPE) ratio, which compares stock prices to average inflation-adjusted earnings over the previous 10 years,
Discover an options trading approach involving HIMS stock and long-term equity anticipation securities, commonly known as LEAPS. In this video, I share my HIMS trade and explain how the strategy aims …
» Read more about: How my HIMS options trading strategy could help reduce the cost of LEAPS »
The S&P 500 (^GSPC +0.28%) index has more than doubled from its 2022 bear market low point, driven by blistering returns from the technology sector which is home to many of the companies leading the artificial intelligence (AI) revolution.
The index’s Shiller cyclically adjusted price-to-earnings (CAPE) ratio recently hit 41,
» Read more about: Federal Reserve keeps rates unchanged despite elevated inflation »
This week’s insights come directly from Shani Jayamanne in “The State of the Australian Investor 2026″ report.
The study, based on share sight data showed direct shares represented 51.5% of portfolio value in FY2026,
» Read more about: Chart of the Week: Investors allocate More to ETFs »
No news is usually good news when it comes to the Federal Reserve’s interest rate decisions, and no news was exactly what the market received today.
The Federal Reserve voted 10-2 to hold its benchmark interest rate steady at 3.75%-4%. This was widely expected, with prediction markets putting the odds of a hold at over 90%.