Business · Markets · 1 hr ago
US stocks rise as Fed holds interest rates steady
US stocks closed slightly higher on Wednesday after the Federal Reserve kept its key interest rate unchanged.
The decision was widely expected, and the major indexes moved only modestly.
The Fed left rates steady but said inflation remains elevated and upgraded its assessment of the economy.
Investors raised their expectations of a rate hike in December, while awaiting economic data for further clues.
Chip shares recovered as AI demand remained in focus, helped by strong quarterly results from South Korean chipmaker SK Hynix.
Investors turned to results from Microsoft and Alphabet, released after the market closed; Microsoft shares rose initially, while Alphabet shares fell.
Upcoming inflation and growth data may shape rate expectations, including a US inflation report and an estimate of third-quarter economic growth.
US stocks ended higher on Wednesday after the Federal Reserve held its key interest rate steady.
The Fed upgraded its assessment of the economy but said inflation remains elevated.
The Dow rose 0.24%, the S&P 500 gained 0.33% and the Nasdaq advanced 0.32%.
Markets raised the probability of a quarter-point rate hike at the Fed’s December meeting to 87.4%.
Investors were also watching chipmakers’ recovery and awaiting results from Microsoft and Alphabet.
- Who
- US stock markets and investors.
- What
- US stocks ended higher after the Federal Reserve held its key policy rate steady.
- When
- Wednesday, October 28, 2026.
- Where
- The United States.
- Why
- The Fed held rates as expected, while investors assessed its economic outlook, chip stocks and upcoming company results.
This story does not have two clearly opposing sides.
The Federal Reserve held its key policy rate steady and upgraded its assessment of the economy.
US stocks ended higher, with the Dow up 0.24%, the S&P 500 up 0.33% and the Nasdaq up 0.32%.
Investors were due to receive the Personal Consumption Expenditures report and an advance estimate of third-quarter GDP.
- Dow Jones Industrial Average
- Rose 126.21 points, or 0.24%, to 52,503.78
- S&P 500
- Gained 0.33% to 7,748.03
- Nasdaq Composite
- Advanced 0.32% to 26,561.24
- December rate-hike probability
- 87.4%, up from 78.3% on Tuesday
- S&P 500 earnings
- 84% of 200 reporting companies beat consensus estimates
8 sources
Wall Street closes higher as Fed holds key rate steady
알파벳의 총제적 난국, 오라클의 지출 축소…별 것 없던 FOMC [김현석의 월스트리트나우]
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Wall Street mostly rises as Fed holds key rate steady, deferring next likely hike to December
What people are saying
The Fed didn't throw any curveballs
Likely the pressure will be to do one more hike in December, as inflation is still potentially an issue
The central bank had made clear its willingness and readiness to act