Markets
Nasdaq Gains 1.2% as Chip Rally Extends Into Fed Decision
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Technology and small caps led Tuesday's advance while the Dow finished flat, with the Fed's verdict and Big Tech earnings due Wednesday.
By Emmanuel Cruz ·
Technology stocks carried Wall Street higher on Tuesday as a rebound in semiconductor shares stretched into another session, lifting the Nasdaq Composite more than 1% on the eve of the Federal Reserve's policy decision.
At the 4 p.m. ET close, the Nasdaq Composite rose 1.18%, or 308.43 points, to 26,477.81, and the S&P 500 added 0.60% to 7,722.60 [1]. The Dow Jones Industrial Average ended essentially unchanged, up 15.99 points at 52,377.57, while the small-cap Russell 2000 climbed 1.16% and the Cboe Volatility Index eased to 17.66 [1].
Chipmakers did much of the lifting. The Philadelphia Semiconductor Index was up 1.8% in the first half-hour of trading, on course for a third straight daily gain after a rough few weeks for the group [2]. By late morning, chip stocks as a group were up 3.2%, with Broadcom gaining almost 4% [3]. Analysts tied part of the renewed appetite for artificial intelligence names to Anthropic's newly public IPO prospectus, which Kyle Rodda of Capital.com said "supported a tech-led rebound on Wall Street" [4]. Technology was the best-performing sector, up about 2% at midday, while energy lagged as oil prices fell [4].
Crude eased on hopes of de-escalation in the Middle East. December West Texas Intermediate futures fell 1.65% to about $100 a barrel, and Brent slipped below $110 [1]. Refiners including Valero, Phillips 66 and Marathon Petroleum were among the weakest stocks in the S&P 500, with Valero down about 7.75% in afternoon trading [4].
Earnings produced sharp moves in both directions. SoFi Technologies jumped 13.42% after beating expectations and raising guidance, and UPS rose about 2% after lifting its full-year revenue forecast [1]. Coca-Cola fell 1.64% even after raising its outlook, as investors focused on slowing demand in North America [1]. Boeing was down roughly 9.5% around midday after a larger-than-expected quarterly loss [2][3], and Xylem slid about 12% after missing estimates and cutting guidance [4]. Meta Platforms edged lower after expanding what has become a record $97.5 billion equity raise to fund its AI build-out [3].
Bond yields held near multi-year highs ahead of the Fed. The 10-year Treasury yield stood at 4.986% at 3:47 p.m. ET, little changed on the day, while the 2-year yield rose 2 basis points to 4.731% [4]. Gold gained 0.88% to $4,073.80 an ounce and bitcoin rose about 1.2% to roughly $80,670 shortly after the stock market close [1].
The Fed's two-day meeting began on Tuesday, and its decision is due Wednesday afternoon. The central bank is widely expected to hold rates steady after raising them last month, though markets are pricing in at least two more increases by mid-2027 [2]. CME Group data showed roughly a 10% chance of a hike at this meeting [1].
What to watch next: beyond the rate statement and the press conference that follows it, Alphabet and Microsoft are scheduled to report quarterly results after Wednesday's close [1], putting the returns on heavy AI spending back in focus. Amazon and Apple also report later this week [4], and investors are watching the November 3 U.S. midterm elections [2].
Sources:
[1] Yahoo Finance, "Stock market today: Dow, S&P 500, Nasdaq rise as tech gains for second day, chip stocks rally", October 27, 2026. https://finance.yahoo.com/markets/live/stock-market-today-tuesday-october-27-dow-sp-500-nasdaq-081901995.html
[2] Reuters via Kitco News, "S&P 500, Nasdaq advance as oil eases ahead of Fed decision", October 27, 2026. https://www.kitco.com/news/off-the-wire/2026-10-27/sp-500-nasdaq-advance-oil-eases-ahead-fed-decision
[3] Rallies, "Wall St rises as AI momentum holds heading into key earnings, Fed decision", October 27, 2026. https://rallies.ai/news/wall-st-rises-as-ai-momentum-holds-heading-into-key-earnings-fed-decision-cee9c296befeb968
[4] TheStreet, "Stock Market Today (Oct. 27, 2026): Big Tech buoys S&P 500, Nasdaq as growth rebound continues", October 27, 2026. https://www.thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-oct-27-2026
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.