US stock markets closed higher on Wednesday after the Federal Reserve decided to keep its benchmark interest rates unchanged, while investors weighed the possibility of further monetary tightening and awaited quarterly results from leading technology companies.
Stocks climb as Federal Reserve leaves rates unchanged
The Dow Jones Industrial Average closed up by 97 points at 52,475.10. The S&P 500 gained 0.28% to end at 7,743.98, and the Nasdaq Composite advanced 0.27% to 26,549.85.
The Federal Open Market Committee, the policy-making group of the US central bank, held its key interest rate steady at the range of 3.75% to 4%. This decision followed a quarter-percentage-point hike in September, which marked the first increase in 2026. The Fed noted that while economic activity has strengthened, persistent inflation remains a concern.
Arthur Azizov, CEO and founder of the fintech company B2BROKER Group, described the move as prudent given policymakers’ limited options in the face of sustained inflation and a weak job market. He pointed out that inflation is largely driven by oil shortages, which are not easily addressed by monetary policy. Azizov also highlighted the timing of the decision ahead of the upcoming US midterm elections.
Policymakers see little option but to hold rates steady, with high inflation fueled by oil shortages and a weak labor market limiting their ability to tighten policy further. With the midterms days away, central bankers aim to avoid major shifts.
Futures markets reflected an 87.4% probability of a 25 basis point rate increase at the Federal Reserve’s December meeting, up from 78.3% the previous day, according to the CME FedWatch tool.
Investors are awaiting additional economic indicators, including the September personal consumption expenditures price index—considered the central bank’s preferred measure of inflation—as well as an estimate of third-quarter GDP.
Technology and chip stocks rally on strong earnings expectations
Technology shares associated with artificial intelligence buoyed markets ahead of earnings announcements from Microsoft and Alphabet.
Oracle stock jumped over 11% after the company disclosed a revenue target of at least $225 billion by fiscal year 2030 and pledged to limit new capital raises to $20 billion between fiscal years 2027 and 2030.
South Korean semiconductor manufacturer SK Hynix reported a quarterly profit more than seven times higher than the previous period. US-based Micron Technology also advanced, and the Philadelphia Semiconductor Index registered its fourth consecutive daily gain.
Investors remain focused on whether heavy investments in AI infrastructure will deliver sustainable long-term returns. Earlier concerns about the scale of AI-related capital spending had weighed on technology stocks, but recent earnings figures have been robust.
Out of approximately 200 S&P 500 companies that have reported their third-quarter results, 84% have exceeded analysts’ expectations, LSEG data indicated. Analysts forecast overall earnings growth for the index at 31.8% year on year.
| Index/Stock | Performance (%) | Notes |
|---|---|---|
| Dow Jones | +0.19% | Closed at 52,475.10 |
| S&P 500 | +0.28% | Closed at 7,743.98 |
| Nasdaq | +0.27% | Closed at 26,549.85 |
| Oracle | +11% | Revenue target of $225 billion for FY2030 |
| SK Hynix | +700% profit YOY | Quarterly results |
Mini dictionary: LSEG (London Stock Exchange Group) is a global financial markets infrastructure and data provider that offers market information, analytics, and financial technology solutions.
Energy prices, company outlooks influence individual stocks
Oil prices increased following an attack by Iran-backed Houthi forces on a refinery in Saudi Arabia, heightening concerns over global supply disruptions. Rising energy prices have sustained inflationary pressures since the onset of conflict involving Iran.
Several stocks moved significantly due to company-specific news. Vertiv, a technology and industrial equipment company, rallied after surpassing quarterly profit expectations and raising full-year revenue and earnings forecasts. Meanwhile, Robinhood shares declined as weaker cryptocurrency trading contributed to a third-quarter profit shortfall. Boston Scientific also lost ground after lowering its annual profit outlook.
Earnings outcomes, inflation data, and the Fed’s potential December move remain central to the market’s near-term direction, while investors gauge the prospects for AI-fueled growth against rising costs and capital needs.
Market participants are closely monitoring inflation data, upcoming decisions from the Federal Reserve, and earnings from major technology firms to determine if recent gains can be sustained in the coming weeks.
