Markets
Stocks Edge Higher at Midday as Wall Street Awaits Fed and Big Tech Results
The Dow and S&P 500 post small gains, Wendy's jumps on a take-private bid and the goods trade gap widens more than expected.
By Emmanuel Cruz ·
U.S. stocks were modestly higher around midday on Wednesday as investors held their positions ahead of the Federal Reserve's policy decision and after-the-bell results from Microsoft and Alphabet.
As of about noon ET, the Dow Jones Industrial Average was up roughly 160 points, or 0.3%, at about 52,537, while the S&P 500 had gained about 0.2% to 7,739 [1]. The Nasdaq Composite was essentially flat near 26,470 after rising 0.4% at the open, and the small-cap Russell 2000 was little changed [1]. The Cboe Volatility Index eased to about 17.2 [1].
The Fed is due to announce its decision at 2 p.m. ET and is widely expected to keep its benchmark rate in a 3.75% to 4% range [2]. Many investors anticipate what has been described as a hawkish hold, with no change in rates but firm language in the statement and in Chair Kevin Warsh's press conference that could prepare markets for a possible increase in December [2]. Former Fed Vice Chair Alan Blinder said "this is a perfect time for clear forward guidance" [1]. The two-year Treasury yield rose 3 basis points to 4.77% [2], and the 10-year yield was around 5.03% [1].
Rate concerns got a fresh reminder from north of the border, where the Bank of Canada raised its policy rate by 25 basis points to 2.5% on Wednesday morning [2].
On the data front, the U.S. goods trade deficit widened 2.1% in September to $134.9 billion, its largest since March 2025, according to advance figures from the Census Bureau reported by Bloomberg [3]. Economists surveyed by Bloomberg had expected the gap to narrow to $130.2 billion [3]. Imports of capital goods jumped 7.5% to a record, led by computers, semiconductors and telecommunications equipment linked to the build-out of AI data centers [3]. Net exports were already on track to subtract heavily from third-quarter growth, with the Atlanta Fed's GDPNow model estimating a drag of 2.86 percentage points before the release [3]. Separate figures showed retail inventories up 0.3% and wholesale inventories up 0.6% [3].
Among individual stocks, Wendy's shares rose about 15% to $7.10 after an investor group led by Nelson Peltz's Trian Fund Management offered to take the burger chain private for about $1.4 billion, or $7.35 a share in cash, according to Reuters [4]. The offer represents a premium of about 20% to Tuesday's close [4]. Trian and related parties own a 16.3% stake, and the group includes franchisee Flynn Group, BlueFive Capital and Sixth Street Partners [4]. In a letter to the board, the group wrote that "private ownership is the better path" [4]. Wendy's, which had roughly $2.4 billion in net debt as of June 28, did not respond to a request for comment from Reuters [4].
Robinhood Markets fell after its third-quarter profit came in below expectations [1]. Memory chip stocks drew support from record results at South Korea's SK Hynix, with Micron up about 2% [1]. U.S. crude oil futures traded above $100 a barrel after an attack on a Saudi Arabian refinery [1][2].
What to watch next: the Fed statement at 2 p.m. ET and Warsh's press conference, followed after the close by results from Microsoft and Alphabet, along with Ford, GE Vernova, T-Mobile, eBay, Chipotle and ServiceNow [1]. For Microsoft and Alphabet, investors will focus on the pace of AI-related capital spending, a theme that has driven much of this week's rally in chip stocks. Complete September trade figures, including services, are scheduled for November 4 [3].
Sources:
[1] Yahoo Finance, "Stock market today: Nasdaq wavers, S&P 500 and Dow climb ahead of Fed decision, Big Tech earnings", October 28, 2026. https://finance.yahoo.com/markets/live/stock-market-today-wednesday-october-28-dow-sp-500-nasdaq-fed-meeting-decision-big-tech-earnings-130508769.html
[2] CoinDesk, "Live updates: Bitcoin sheds early gains; Strategy's STRC moves to daily dividends", October 28, 2026. https://www.coindesk.com/business/2026/10/28/live-updates-bitcoin-climbs-above-usd81-000-as-majors-rally-ahead-of-fed-decision
[3] Transport Topics (Bloomberg News), "Trade gap jumps to most since March 2025 on capital goods", October 28, 2026. https://www.ttnews.com/articles/trade-gap-september-2026
[4] Investing.com (Reuters), "Wendy's gets $1.4 billion take-private offer from Peltz-led group", October 28, 2026. https://www.investing.com/news/stock-market-news/trian-fund-management-offers-to-buy-wendys-for-14-billion-wsj-reports-4979065
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.