Stocks edge higher after Fed holds rates; cloud earnings split the after-hours trade
Wednesday, October 28: a modestly higher close, an unchanged Fed rate, and different early reactions to Microsoft and Alphabet results.
The close
| Index | Close | Day, rounded |
|---|---|---|
| S&P 500 | 7,743.98 | +0.3% |
| Dow Jones Industrial Average | 52,475.10 | +0.2% |
| Nasdaq Composite | 26,549.85 | +0.3% |
U.S. stocks finished modestly higher Wednesday after the Federal Reserve left its benchmark interest-rate range unchanged. The Dow added 97.53 points. The table shows the regular-session close, not after-hours trading.
What moved, and why
A hold, not an all-clear on inflation. The Fed kept its target range at 3.75% to 4% in a 10-2 vote. Lisa Cook and Beth Hammack preferred a quarter-point increase. The statement described economic activity as expanding at a strong pace, while saying inflation remained elevated and more information would help determine the appropriate policy stance. A pause at this meeting is not a promise about the next one. Our Fed report has the decision and the separately reported changes to future meeting formats.
The memory trade supported technology. Chipmakers gained after SK Hynix's quarterly results. CNBC and Reuters reported strength in SK Hynix's U.S.-listed shares and Micron during the session. That helped the AI infrastructure trade, but a strong supplier quarter does not by itself establish the return that every customer will earn on its spending. For another part of the supply chain, see our Vertiv results and outlook report.
Oil moved in the other direction from Tuesday. West Texas Intermediate crude settled at $102.78 a barrel, up 2.88%, while Brent settled at $115.32, up 1.26%. CNBC and Xinhua reported the settlements. Coverage continued to focus on Middle East supply and conflict risks. These are futures settlements, not retail fuel prices. More in Chain, Crude & Chips.
After the bell: cloud growth, different reactions
Microsoft: CNBC and CoinDesk reported quarterly revenue of about $92.3 billion, adjusted earnings of $4.89 a share and Azure revenue growth of 48%. Both reported an initial rise in the shares in extended trading. Those earnings arrived after the regular-session close and should not be used to explain the closing index figures above.
Alphabet: CNBC and 9to5Google reported revenue of about $127.6 billion, up 25%, and Google Cloud revenue of about $30.7 billion, more than double the year-earlier level. Net income fell to about $26.2 billion. CNBC and CoinDesk reported an initial after-hours decline in the shares. Strong revenue growth and falling net income can occur in the same quarter; neither number substitutes for the other. Early trading reactions can change as investors read the release and hear management's explanations.
What to watch next
Thursday's calendar includes the advance estimate of third-quarter U.S. GDP and September personal income and spending, including the PCE inflation measure, at 8:30 AM ET. CNBC's Thursday preview and the Macro Bullseye calendar both list those releases. After the Fed's pause, the distinction to watch is between growth that remains strong and inflation that still needs to come down.
For the earnings reports, keep revenue, profit and spending separate. Cloud growth measures demand; it does not alone show how much cash remains after investment. Tonight's initial headlines are a starting point for that comparison, not the final word.
