2026.10.2820:09:57UTC+00Wall Street Rises as Fed Holds Rates Steady

US stock indices closed higher on Wednesday, with the S&P 500 up 0.3%, the Nasdaq gaining 0.2%, and the Dow edging just above the flatline, as investors absorbed the latest FOMC decision and remarks from Fed Chair Warsh. As widely anticipated, the Federal Reserve left interest rates unchanged, though two policymakers dissented in favor of a 25 bps hike. Warsh struck a confident tone on inflation, indicating that inflation expectations remain well anchored.

Financial heavyweights generally advanced, with JPMorgan up 1%, Morgan Stanley rising 1.7%, Goldman Sachs gaining 1.5%, and Wells Fargo adding 1.2%. Corporate earnings remained a key driver, with Microsoft (-0.1%) and Alphabet (+1.3%) scheduled to report after the close. Alphabet also gained support from reports that OpenAI plans to purchase AI computing chips from Google.

Record quarterly profits at SK Hynix boosted semiconductor shares, lifting Micron (+5.9%) and AMD (+3.2%). By contrast, Apple slipped 0.9% despite unveiling a revamped MacBook Pro equipped with a touchscreen.