Markets in 5Tuesday, October 27
Stocks rise as Fed decision nears and yields hold
Stocks rose Monday on the Anthropic IPO filing, the 10-year yield held at 5.00%, and the Fed decision due Wednesday is the next focus.
Stocks
Stocks rebound after Anthropic filing lifts tech shares
The S&P 500 rose about 0.7% to roughly 7,677 on Monday, and the Nasdaq Composite gained about 0.8% to roughly 26,169, while the Dow added about 0.3%. The gains broke a run of back-to-back weekly losses for the S&P 500 and Nasdaq. The main driver was Anthropic's public IPO filing, which disclosed $16.29 billion of revenue for the six months to June, and a retreat in crude oil also eased pressure on stocks.
Rates
Treasury yields little changed; 10-year holds at 5.00%
The 10-year Treasury yield closed Monday at 5.00%, unchanged from the 23 October close, according to the official Treasury par yield data. The 2-year yield eased 1 basis point to 4.68%, and the 30-year slipped 2 basis points to 5.31%, leaving the 2s10s spread at 32 basis points. A year earlier, on 24 October 2025, the 10-year stood at 4.02%.
The Fed
Fed decision due Wednesday, with a hold widely expected
The Federal Open Market Committee meets 27 to 28 October, with the rate decision due Wednesday at 2:00 p.m. ET and Chair Kevin Warsh's press conference at 2:30 p.m. ET. The fed funds range is 3.75% to 4.00%, after a 25-basis-point hike in September approved 12 to 0. Futures priced roughly a 90% probability of a hold, and nearly 75% of market participants expect at least one hike by year-end, according to CNBC.
Economy
September inflation at 3.7%, payrolls up 29,000
The September consumer price index rose 3.7% from a year earlier, and payrolls rose only 29,000, according to figures cited by EBC. The Chicago Fed National Activity Index came in at +0.07 for September, up from -0.08 in August. Durable goods orders for September are listed for Tuesday, although that date comes from an outlook site and awaits official confirmation.
Earnings
Whirlpool cuts outlook as JetBlue and Celestica rise after hours
After Monday's close, Whirlpool fell about 8.7% on weak results and cut its full-year guidance after missing expectations. JetBlue rose about 11.6% despite a wider loss, and Celestica climbed about 9.7% on a beat-and-raise quarter. Microsoft and Alphabet report Wednesday after the close, and about one-third of S&P 500 companies report this week.