Stock Market Today: Dow Futures Fall, S&P 500, Nasdaq Futures Climb Ahead of Fed Decision, Big Tech Profits

U.S. stock futures were mixed ahead of a critical day for markets, with a Fed decision and earnings results from Microsoft (MSFT) and Alphabet (GOOG) on deck.

Dow Jones Industrial Average Futures (YM=F) were trading flat, while those of the S&P 500 (ES=F) increased by 0.2%, and contracts for the Nasdaq-100, with a strong technological component (NQ=F) gained 0.3%.

Sentiment in the technology sector improved markedly this week, with the S&P 500 and Nasdaq posting back-to-back gains. Semiconductor stocks led the rally Tuesday after Broadcom’s CEO negotiated with a consortium of banks to announce a $63 billion financing structure for building AI computing capabilities.

They continued to advance on Wednesday after South Korean memory chip maker SK Hynix (SKHY, 000660.KS) reported that its profits rose 632% year-on-year. Shares of Micron (MU) and Samsung (005930.KS) also rose.

Attention now turns to the Federal Reserve’s interest rate decision at 2 p.m. ET, where the Fed is expected to keep rates steady despite high inflation numbers. Fed Chairman Kevin Warsh’s press conference will be closely monitored for any signs of hawkish bias. (Follow live updates from the meeting.)

Earnings season continues apace as two big tech giants and cloud leaders – Microsoft and Alphabet – provide updates on AI demand and their investment plans after the bell. Microsoft’s report comes just after it proposed buybacks of up to 60,000 employees as it attempts to streamline operations amid AI development.

To complete the profit picture, Ford (F), GE Vernova (GEV), T-Mobile United States (TMUS), eBay (EBAY), Chipotle Mexican Grill (GCM) and ServiceNow (NOW).

LIVE 7 updates

Billionaire investor Nelson Peltz decides to buy struggling Wendy’s
Nelson Peltz’s Trian Partners has reportedly offered $1.4 billion to buy the struggling fast-food giant, according to the Wall Street Journal. Shares of Wendy’s rose 15% in premarket trading following the news.
Brian Sozzi of Yahoo Finance reports:
After nearly two years of battling giants like McDonald’s (MCD) and Yum! Brands (YUM) Taco Bell, along with newcomers such as Shake Shack (SHAK), Wendy’s is poised to close a slew of restaurants.
“With one of its largest franchisees filing for bankruptcy in September (although contested by WEN given the early termination of the franchise agreement), we think investors are likely expecting higher than expected closures, but we admit that visibility on our side remains somewhat limited and there could still be a range of outcomes,” veteran restaurant analyst Andy Barish cautioned in a recent note. “That said, given that we believe there are likely other franchise operators in the system facing challenges related to leveraged balance sheets, higher interest rates, and profitability pressures from rising meat, labor, and construction costs (like many others in QSR), we believe it is prudent to moderate our development estimates and anticipate more potential closures over the next 6 to 12 months as the company works to strengthen its system.”
Learn more.
Robinhood Warns Its AI Agents Could Make Unauthorized Trades, Triggering Legal Disputes
Robinhood (HOOD) warned Wednesday that its new artificial intelligence agents could execute unintended trades and expose the online trading platform to new regulatory and legal risks.
Robinhood opened its platform to customer-contributed AI agents in May and began rolling out an in-app version last month. The company warned in its third-quarter regulatory filing that the expansion created “greater reputational risk” as the technology reaches more investors.
In an interview last month, Robinhood said customers are responsible for trades executed by their agents. But the company now recognizes that courts or regulators might not enforce its customer agreements that assign responsibilities to its customers.
The new warnings were added to the risk factors section of the company’s 10-Q filing. Shares of Robinhood fell nearly 8% premarket Wednesday after reporting weaker-than-expected third-quarter earnings on Tuesday.
SK Hynix Profits Jump 632%, Memory Chipmaker Predicts Shortage Through 2030
U.S.-listed shares of SK Hynix (SKHY) rose 8% premarket Wednesday, after the memory maker’s record profits and revenue eased investors’ recent concerns about the AI business.
South Korean shares SK Hynix (000660.KS) jumped 10% while peer Samsung Electronics (005930.KS) gained 5%. US-based Micron (MU) also rose 2%.
The South Korea-based company reported a 328% jump in quarterly revenue to around $78.7 billion, while operating profit jumped 632% to around $62.7 billion, generating an operating margin of 80%. Revenue and operating profit increased by 32% and 38%, respectively, compared to the previous quarter.
The growth was driven by growing demand from AI data centers, rising memory prices and first shipments of HBM4, which SK Hynix said is expected to replace HBM3E as its main product.
Learn more.
Fed expected to keep rates steady this week despite high inflation – but signals it’s not done raising rates
Yahoo Finance’s Jennifer Schonberger provides insight into what to expect and what to expect in the Federal Reserve’s policy announcement and press conference Wednesday afternoon:
The Federal Reserve begins its interest rate decision this week in the face of higher inflation, keeping the meeting live even as markets widely expect the central bank to keep interest rates steady just days before the midterm elections.
Alan Blinder, former Fed vice chairman and economics professor at Princeton University, expects a “hawkish pause.”
Although Fed Chairman Kevin Warsh is not in favor of announcing the central bank’s next move, Blinder said this moment demands clarity.
“This is the perfect time for clear forward guidance that doesn’t outright say, but strongly suggests, that we are pausing now, but we are prepared to raise again and even hint that the next meeting could be the next interest rate hike.”
Learn more.
The 6 best months of the year on the stock market start Monday
Jared Blikre of Yahoo Finance writes:
The stock market’s favorite season begins on Monday. For decades, the period from November to April far outpaced the rest of the year.
This is the Halloween indicator, also known as the “best six months” or “sell in May.” Buy stocks at the end of October, hold them until April, then save up for the summer.
Yale Hirsch discovered this pattern in 1986. “You can divide the year into two sections and have virtually all the gains in one six-month section and very little in the other,” wrote his son Jeffrey Hirsch, editor of the Stock Trader’s Almanac, in the 2026 edition.
Since 1950, the Dow Jones Industrial Average (^DJI) has gained an average of about 7% from November to April, compared to less than 1% from May to October, according to the Stock Trader’s Almanac. Put just $10,000 in the good half of each year, and the amount grew to about $1.3 million. Put it only in the bad half, and it’s down to around $4,300.
Learn more.
Average price change of the S&P 500, each year each six-month period begins · Yahoo Finance
Good morning. Here’s what’s happening today.
Economic data: FOMC rate decision; MBA mortgage applications, week ended October 23 (-5.3% previously); Advanced merchandise trade balance, September (-$130.5 billion expected, -$132.1 billion previously); Retail inventories, month-on-month, September (+0.2% previously); Wholesaler inventories, month-on-month, preliminary figure for September (+0.4% expected, +0.5% previously)
Earnings schedule: Alphabet (GOOG), Microsoft (MSFT), GE Vernova (GEV), KLA Corporation (KLAC), Amphenol Corporation (APH), ServiceNow (NOW), T-Mobile US (TMUS), UBS Group AG (UBS), Automatic Data Processing (ADP), Equinor ASA (EQNR), Phillips 66 (PSX), Vertiv Holdings (VRT), O’Reilly Automotive (ORLY), American Electric Power Company (AEP), Boston Scientific (BSX), TE Connectivity (TEL), Deutsche Bank (DB), Garmin (GRMN), eBay (EBAY), Honeywell Aerospace (HONA), United Microelectronics Corporation (UMC), Ford Motor Company (F), Carvana (CVNA), Biogen (BIIB), Chipotle Mexican Grill (CMG), GE HealthCare Technologies (GEHC), Raymond James Financial (RJF)
Catch up on some news you may have missed overnight:
Oil prices rise after attack on Saudi refinery reignites supply concerns
Wall Street lines up $21 billion in debt for Broadcom chip deal
Robinhood Stock Falls 7% After Missing Profits Despite Record Trading Volumes
Higher prices could persist until 2027, economists say
Google heads for profit with Meta’s Muse leading the way
AI Concerns Reveal Dollar’s Burning Money Problem
Reuters reports:
Investors have long treated the U.S. dollar as a safe haven when markets fall, but foreign capital seeking returns from the AI boom could weaken that safe-haven role if the trade unravels.
Foreign capital has flowed into US mega-cap stocks, large-scale corporate bonds and power grid infrastructure. That has made the dollar an increasingly important bet on American exceptionalism, supported by faster growth, higher yields and persistent foreign demand for American assets.
But if the AI narrative stumbles, the dollar’s safe-haven status could collide with its growing role as a risk-sensitive asset, increasingly held by price-sensitive investors. A sustained selloff in stocks could lead investors to sell U.S. assets, drowning out safe-haven demand for the currency.
If the AI trade unravels, “it’s not as clear that the dollar will benefit in the same way as it would have in the past,” said Dominic Bunning, head of FX G10 strategy at Nomura.
Learn more.