FED Meeting Live | Dow Jones Futures | US Stock Market Live: US stocks turn choppy as megacaps offset chip gains before Fed meet
Business News›Markets›US Stocks›Wall St Guide›FED Meeting Live | Dow Jones Futures | US Stock Market Live: US stocks turn choppy as megacaps offset chip gains before Fed meet
Fed Meeting Live Updates | US Stock Market Live: US stocks trade in a narrow range as chipmakers rally after strong SK Hynix results, offsetting losses in heavyweight technology stocks. Investors await the Federal Reserve’s rate decision and key earnings from Microsoft and Alphabet, with AI spending and debt-funded investment in focus.
US stocks trade in a narrow range as chip gains after strong SK Hynix results are offset by losses in heavyweight technology stocks, while investors await the Fed decision and key earnings.
• Micron rises 4.8%
• SK Hynix shares surge 10.6%
• Tesla falls 1.9%
• Microsoft and Alphabet results are due after the bell
• Micron rises 4.8%
• SK Hynix shares surge 10.6%
• Tesla falls 1.9%
1 New Update
The Federal Reserve is widely anticipated to keep its benchmark interest rate on hold at Wednesday's policy meeting, despite recent accelerations in inflation driven by higher oil prices from the Middle East conflict and heavy AI infrastructure spending. Following a rate hike to 3.9% last month, its first increase in three years, the central bank under Chairman Kevin Warsh faces a delicate balancing act. While consumer price inflation reached 3.7% in September, higher borrowing costs are already straining key sectors, with mortgage rates hovering near 7.4% and further dampening housing affordability just days before US midterm elections.
Investors will closely monitor Chairman Warsh's post-meeting news conference for indications of future policy, particularly whether the Fed will resume rate hikes at its December meeting. Critics argue that persistent energy costs and elevated shipping expenses require a firmer stance to bring inflation back to the Fed's 2% target. However, strong third-quarter GDP growth projections of 3% and a steady 4.2% unemployment rate suggest the broader economy remains resilient, giving policymakers room to evaluate upcoming economic data before taking further action.
Eurozone government bond yields pushed higher on Wednesday, led by a sharp rise in French debt, as escalating Middle East tensions drove crude prices up and investors prepared for a wave of global central bank decisions. German 10-year yields, the bloc's benchmark, rose slightly to 3.36%, while Brent crude gained 2% to near $116 a barrel following a refinery attack in Saudi Arabia. Short-term yields also advanced, with Germany's two-year bond climbing six basis points to 3.11% as markets weighed energy-driven inflation risks against softening economic growth.
French borrowing costs faced the strongest upward pressure, with 10-year yields jumping three basis points to 4.94%—nearing two-decade highs. Investors remain wary of France's worsening fiscal trajectory, civil unrest, and political uncertainty ahead of next year's presidential election. Attention now turns to Thursday’s European Central Bank meeting, where policymakers are expected to hold interest rates steady while navigating sticky inflation, volatile energy markets, and widening stress across European sovereign debt.
Anthropic told California Governor Gavin Newsom that government officials should be allowed to seek court orders preventing the deployment of artificial intelligence models that present a serious public risk. In an October 15 letter sent following a state AI safety panel, the company advocated for judicial oversight over prospective releases while opposing mandatory "kill switches" that can shut down entire AI models, favoring more targeted measures like disabling specific problematic agents or user access instead.
The policy proposal aligns with broader federal debates, including stalled bipartisan Senate legislation that would grant similar injunctive powers subject to court challenges. Anthropic's advocacy for legal safety frameworks comes as the firm prepares for its landmark initial public offering, despite its own history of regulatory friction, including a temporary Commerce Department order earlier this year that restricted international access to its Mythos 5 and Fable 5 models.
European natural gas futures crossed €100 per megawatt-hour on Wednesday, reaching their highest level since December 2022. The price surge follows supply disruptions from the escalating war in Iran, combined with unusually low fuel reserves and approaching cold weather across Europe. Dutch front-month futures rose 4.4% to €100.27, tripling pre-war price levels and adding more than €100 billion to the region’s fossil-fuel import costs.
The price spike intensifies economic pressure on European households and industries, reviving cost-of-living concerns and manufacturing strains across the bloc. Supply risks have grown as Middle Eastern exporters, including Qatar, extended force majeure on select LNG deliveries. With Europe forced to compete directly against Asian buyers for limited spot LNG cargoes ahead of peak winter demand, analysts warn that severe cold snaps could push benchmark prices even higher.
Shares in major British homebuilders fell sharply on Wednesday after Finance Minister John Healey's maiden budget failed to provide clear details on the timeline and funding for a new first time buyer initiative. The sector index dropped over 4%, reversing earlier gains, while leading developers Barratt Redrow, Taylor Wimpey, and Persimmon each fell more than 5%.
Although the government pledged £4.7 billion in lending for the 'Your First Home' scheme, analysts noted that equity loans will not be available until April 2027. This delayed rollout misses the key spring selling season, while the limited funding pool suggests the program may only last a couple of years, creating uncertainty that could deter homebuilders from investing in new construction sites.
Global oil refining is enjoying record profitability as attacks in the Middle East and Russia disrupt fuel-making capacity, Bloomberg reported. Refiners worldwide are operating at full tilt, pushing US Gulf Coast margins to an unprecedented $72 per barrel in September. Similar gains have emerged across Europe and Asia as gasoline, diesel and jet fuel prices rise. Despite concerns about electric vehicles and remote working weakening long-term demand, Marathon Petroleum, Valero Energy and Phillips 66 have each gained over 100% this year.
Russian President Vladimir Putin hailed Elon Musk as a genius on Wednesday, acknowledging Russia is only beginning to roll out its answer to his Starlink satellite internet system.
The admission was all the more striking because a version of Starlink, developed by Musk's SpaceX, has been used by Ukraine's military throughout the war with Russia as a key component of drone operations and battlefield communications.
Putin made the remark while listening to a presentation by Digital Development Minister Maksut Shadayev, who said Russia had launched more than 30 satellites as it builds its own Starlink equivalent.
"Just a second, I want to point out this is just our first step. Elon Musk is a genius, he's just a real genius," said Putin, who was accompanied by a group of African leaders attending a summit in Moscow.
The US dollar was flat against major currencies on Wednesday ahead of the Federal Reserve's interest rate decision, while the New Zealand dollar fell sharply after the country's central bank surprisingly left interest rates unchanged.
Traders expect the Fed to leave monetary policy unchanged but they see a 78% chance that the US central bank could lift interest rates by at least 25 basis points in December, according to the CME Group's FedWatch.
The euro was flat against the dollar at $1.1130, trading just above the May 2025 low it hit earlier this month.
Against the Japanese yen, the dollar was up 0.14% to 158.19 yen.
Anthropic on Wednesday released a set of new tools for legal professionals after taking feedback from lawyers seeking easier collaboration and customization from the AI company's Claude for Legal assistant.
The new tools, which Anthropic calls artifacts, allow users to more easily create alternatives within Claude's traditional chatbot interface, the company said. They cover work areas that Anthropic said legal teams have asked about most often, including citation checking, mapping regulations and comparing legal topics.
Amazon cut about 250 jobs on Wednesday in its devices and services unit after weeks of product rollouts including new Kindle e-readers and tablet computers.
The company confirmed the cuts after a Reuters inquiry. "We've made the difficult decision to eliminate a small number of roles," a spokesperson said without elaborating.
The cuts affected no more than 250 jobs, said a person familiar with the matter, primarily in software development.
The layoffs will help the company "operate more efficiently and better align with our product roadmap," the spokesperson said. Amazon on Wednesday also announced a new Alexa-powered alarm clock and photo frame.
Prediction markets are seeing record trading volumes on contracts tied to Anthropic's upcoming initial public offering. Platforms like Polymarket and Kalshi have drawn tens of millions of dollars in wagers covering the company's debut valuation, listing exchange, lead underwriters, and fundraising haul. Industry experts view the surging interest as a real-time gauge of market sentiment for the AI lab, which Reuters reports could fetch a valuation between $1.5 trillion and $2 trillion.
While institutional investors traditionally dominate IPO share allocations, prediction contracts give individual traders a novel way to gain financial exposure to high-profile corporate events. Analysts note that these binary bets are increasingly extending into traditional Wall Street territory, serving as both a speculative outlet and a price discovery tool. As Anthropic prepares to list next month, analysts expect the market reaction to serve as a critical test for overall investor appetite surrounding large-scale AI infrastructure.
US Treasury yields moved higher on Wednesday as investors awaited the Federal Reserve's afternoon interest rate announcement while monitoring upcoming quarterly reports from major technology leaders. Markets widely expect the Fed to keep benchmark interest rates unchanged following its rate increase in September. However, futures pricing reflects a 75% chance of another quarter point rate hike coming in December. Benchmark 10-year yields pushed past 5.02%, supported by persistent inflation concerns tied to elevated oil prices after a recent attack on a Saudi Arabian refinery as well as heavy capital spending across the artificial intelligence sector.
Market attention remains fixed on whether high energy costs and tech infrastructure demand will slow progress toward the Fed's inflation target, with Thursday’s Personal Consumption Expenditures report expected to offer clearer direction. Meanwhile, yields rebounded from last week's sharp bond market rally, which was triggered by stock sell-offs following Meta's aggressive capital spending announcements. Investors have now turned their focus to post-market earnings from Microsoft and Alphabet, seeking evidence that accelerating cloud growth can offset the ongoing financial drain of the AI buildout.
US crude oil inventories fell by 1.9 million barrels to 410.6 million barrels for the week ending October 23, defying analyst forecasts for a minor build. Distillate stocks also shrank by 1.5 million barrels to 102.8 million barrels, recording a larger draw than expected. The declines were accompanied by a drop in net crude imports of 796,000 barrels per day, a 624,000-barrel draw at the Cushing delivery hub, and a slight dip in refinery utilization to 92.8%.
In contrast, gasoline inventories rose sharply by 3.9 million barrels to 209.2 million barrels, surprising markets that had anticipated a 0.9 million-barrel draw. The unexpected buildup highlights shifting demand patterns, as rising motor fuel supplies countered the overall contraction across raw crude and middle distillate reserves.
International oil prices moved higher on Wednesday as ongoing instability across the Middle East and global energy markets kept investors on edge. Brent crude, the global benchmark, advanced 1.8% to settle at $111.33 per barrel.
Etsy shares jumped 3.7% following a strong quarterly earnings report that significantly beat Wall Street profit estimates. CEO Kruti Patel Goyal highlighted two major milestones for the online marketplace: active buyer growth returned to positive territory for the first time in two years, while its active seller base expanded at its fastest pace over the same period.
GE HealthCare Technologies saw its stock climb 7.3% after posting third quarter revenue and profit that topped Wall Street estimates. Buoyed by the strong seasonal performance, the medical technology company also upgraded its full year financial outlook, raising forecasts for revenue growth and key performance metrics.
Wendy's shares jumped 15% after activist investor Nelson Peltz and his firm, Trian Fund Management, offered to acquire the struggling fast-food chain for $7.35 per share in cash. The deal values the company at an 19% premium over its previous closing price. Trian, which already holds a 16.3% stake in the chain, argued in a letter to the board that taking the company private is necessary to navigate persistent inflation, intense fast-food competition, and weakening consumer spending.
The takeover proposal comes after a prolonged downturn for Wendy's, marked by two consecutive years of declining same-store sales and a 25% drop in its stock price over the past year. The Dublin, Ohio-based company declined to comment on the proposal ahead of its upcoming quarterly earnings report. Analysts expect the chain to report earnings of 9 cents per share on $531 million in revenue.
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.