FED Meeting Live | Dow Jones Futures | US Stock Market Live: S&P 500, Nasdaq open higher as SK Hynix lifts chips; Fed meet in focus
Business News›Markets›US Stocks›Wall St Guide›FED Meeting Live | Dow Jones Futures | US Stock Market Live: S&P 500, Nasdaq open higher as SK Hynix lifts chips; Fed meet in focus
Fed Meeting Live Updates | US Stock Market Live: US stocks open mixed on Wednesday, with the Nasdaq and S&P 500 rising as memory-chip firms gain after SK Hynix’s strong results. Investors await key corporate earnings and the Federal Reserve’s rate decision, while the Dow slips 0.08% at the open.
US stocks open mixed as chip stocks gain after SK Hynix reports strong quarterly results, lifting the Nasdaq and S&P 500. Investors focus on upcoming corporate earnings and the Federal Reserve’s rate decision for cues on the AI trade.
• Nasdaq rises 0.24% at the open
• S&P 500 gains 0.17%
• Dow slips 0.08%
• Chip stocks gain after SK Hynix results
• Nasdaq rises 0.24% at the open
• S&P 500 gains 0.17%
• Dow slips 0.08%
• Chip stocks gain after SK Hynix results
1 New Update
Microsoft is gaining the upper hand over Alphabet as investors scrutinize the soaring cost of building artificial intelligence infrastructure. While Alphabet's free cash flow recently turned negative due to massive capital expenditures, Microsoft's strong cloud revenue growth has reassured Wall Street that its heavy spending is yielding tangible returns.
With both tech giants reporting earnings, investors are watching cloud performance closely for proof that AI investments translate into sustainable profits. Microsoft's stock has surged while Alphabet's has declined, reflecting market preference for companies that maintain cash flow discipline amid high infrastructure costs.
The S&P 500 and the Nasdaq opened higher on Wednesday as memory-chip firms climbed after SK Hynix's bumper results, while investors looked to upcoming key corporate earnings as the next test of AI trade, alongside the Federal Reserve's rate decision.
Read more: US stocks trade higher
The US Department of Energy finalized a $5.1 billion loan to Alliant Energy to construct natural gas facilities, deploy battery storage systems, and upgrade power plants across Iowa and Wisconsin. The 30-year financing package will add over 2.6 gigawatts of capacity, generating enough electricity for nearly 1.8 million homes while creating hundreds of construction jobs. Alliant estimates that the low-cost government financing could save its utility customers up to $1.2 billion in energy bills over time.
The deal marks a significant expansion from a $3 billion clean energy loan conditionally proposed in the final days of the Biden administration. Under new leadership, the renamed Office of Energy Dominance Financing has broadened its scope beyond emerging green technologies to fund traditional natural gas infrastructure that previously relied on commercial bank loans. Agency officials say the investment will strengthen grid reliability, though consumer bill savings are expected to take decades to fully materialize.
The US merchandise trade deficit expanded to $134.9 billion in September, reaching its widest gap since March 2025. This shortfall exceeded consensus forecasts and was primarily driven by a 7.5% surge in capital goods imports, which includes semiconductors, telecommunications gear, and computing hardware essential for outfitting data centers during the ongoing artificial intelligence boom.
While total exports also rose, led by gains in food, beverages, and consumer products, the elevated import volume for tech infrastructure continues to weigh heavily on net trade. These figures indicate that foreign trade will remain a substantial drag on third-quarter economic growth, with updated models estimating a nearly three-percentage-point deduction from gross domestic product.
Anthropic is preparing for its upcoming initial public offering by warning potential investors that its outspoken stance on artificial intelligence safety has made it a target for government retaliation. The company’s S-1 filing outlines significant exposure to political headwinds following a year of friction with the Trump administration. Feuds over Pentagon guardrails previously led to a military ban on its Claude model, while clashes regarding the cyber capabilities of its cutting-edge Mythos system triggered temporary export controls. Anthropic cautioned that its continued advocacy for industry regulation and international safety standards could limit its own growth, increase compliance burdens, and invite selective scrutiny from federal officials.
Beyond immediate political friction, the filing highlights broader systemic and existential concerns that could impact the firm's financial future. Anthropic noted that advanced models pose catastrophic bioweapon and cyber risks if mismanaged, leaving the business open to severe liability and reputational fallout. Additionally, officials have floated extreme measures like mandatory model shutdowns, trade restrictions cutting off global expansion, or leveraging the Defense Production Act to force operational disclosures. With the administration relying on sudden interventions rather than established legal frameworks, investors must navigate unprecedented regulatory ambiguity as the company attempts to balance commercial growth with AI safety.
Wingstop has reduced its annual outlook for the third time this year as budget-conscious diners cut back on spending. The chicken wing chain now expects US same-store sales to decline by up to 7% for the year, following a sharper-than-expected 5.4% drop in the third quarter. Fast-food restaurants are facing broader headwinds as lower-income consumers manage tight budgets against rising living costs. The impact is especially noticeable for Wingstop, which has over half of its locations in low-income urban areas.
Unlike competitors offering direct discounts, the company has focused on highlighting its existing group meals, building out a loyalty program, and upgrading kitchen operations to boost speed. However, industry analysts question whether these efforts are resonating with cash-strapped customers who may no longer view chicken wings as a cost-effective dining option. Despite the trimmed guidance, Wingstop shares jumped in early trading on Wednesday after suffering a steep decline earlier in the year.
The US dollar’s traditional safe-haven status could come under pressure if the artificial intelligence (AI) investment boom unwinds, as foreign investors retreat from American stocks and corporate bonds.
Read more: Sinking safe haven status
Alphabet advanced 1.5% after a media report said OpenAI planned to buy Google’s AI chips. Nvidia rose 0.8%, AMD gained 1.8% and Marvell added 2.3%. Seagate fell 1.5% after reporting first-quarter results, while Visa dipped 1.8% after its fourth-quarter results. Investors also awaited Thursday’s PCE inflation data and third-quarter GDP figures.
The earnings calendar remained busy, with Amazon.com and Intel scheduled to report later in the week. Their results were expected to provide another test of investor confidence in the technology and AI trade. Vertiv jumped 15.3% after raising its full-year profit and revenue forecasts and beating third-quarter expectations, while Robinhood fell 7.2% after missing Wall Street’s third-quarter profit estimates.
The Federal Reserve’s interest-rate decision was due at 2 p.m. ET, with markets widely expecting policymakers to hold rates after last month’s hike. Traders nevertheless saw a hawkish path ahead, with LSEG data showing expectations for at least three 25-basis-point increases by late 2027. Rising energy costs linked to the Middle East conflict remained an inflation concern.
Investors continued to assess whether heavy AI investment could generate sufficient returns as borrowing costs remained elevated. The Nasdaq had gained about 2% so far this week after a weak first half of October. Attention turned to Microsoft and Alphabet, whose results were due after the market close, with investors focused on cloud growth and capital spending.
Nasdaq futures rose on Wednesday as semiconductor shares gained after South Korea’s SK Hynix reported a more than sevenfold jump in quarterly profit. Micron Technology gained 4.2% in premarket trading, while SK Hynix’s US-listed shares jumped 8.5%. Sandisk, Western Digital, Nvidia, AMD and Marvell Technology also rose.