Markets in 5Wednesday, October 28
Chip stocks lift Nasdaq as Fed decision nears
Chipmakers lifted the Nasdaq 1.18% as crude slid and the dollar firmed ahead of Wednesday's Fed decision, which markets widely expect to be a hold.
Stocks
Nasdaq gains 1.2% as chipmakers rally
The S&P 500 rose 0.6% to 7,722.60 on Tuesday, the Nasdaq Composite gained 1.18% to 26,477.81 and the Dow edged up 0.03% to 52,377.57. The Philadelphia Semiconductor Index rose 3.6% after Broadcom's $63 billion financing deal tied to Anthropic, and the Russell 2000 gained 1.16% to 2,818.87. The S&P 500 still finished about 1.2% below its all-time high set earlier in October, and the VIX fell 4.7% to 17.53.
The Fed
Fed decision due Wednesday, with a hold widely expected
The Federal Reserve announces its decision at 2:00 p.m. ET Wednesday, with Chair Kevin Warsh's press conference set for 2:30 p.m. The fed funds target is 3.75%–4.00% after a 25 basis point hike in September. Market pricing puts about a 90% chance on a hold and roughly 10% on a hike, while Associated Press reporting named Beth Hammack and Lorie Logan as possible dissenters favoring a hike.
Rates
Ten-year Treasury yield eases to 4.99%
The 10-year Treasury yield closed at 4.99%, down 1 basis point from 5.00% a day earlier, according to official Treasury par yield data. The 2-year yield was 4.70%, leaving the 2s10s spread at 29 basis points. The 30-year yield finished at 5.30%, and the 10-year sat well below its 5.17% level of late September.
Earnings
Boeing shares fall 10.69% after 737 delivery shortfall
Boeing fell 10.69% to $168.18, its steepest one-day drop in over 18 months and the Dow's worst performer. Boeing will miss its 2026 target of about 500 737 deliveries, and its 47-a-month production rate slips to early 2027. Its 2027 free cash flow outlook of about $3 billion came in well below the roughly $5.5 billion analysts expected.
Global
Kospi jumps 6.8% as Asian markets rise
The Kospi jumped about 6.8% to 6,023.73, led by SK Hynix, which rose 11.4% after a record quarterly operating profit. The Nikkei 225 rose 1.1% to 63,954.19, while the Hang Seng gained 0.2% to 23,089.22 and the Shanghai Composite rose 0.5% to 3,666.50. Before the European open, Euro Stoxx futures were down about 0.09% and DAX futures down 0.29% ahead of the Fed decision.