October 28, 2026 — U.S. stocks traded unevenly on Wednesday as gains in semiconductor shares were offset by declines in major technology companies, with investors awaiting quarterly results from Microsoft and Alphabet and the Federal Reserve’s latest interest-rate decision.
Chipmakers advanced after South Korean memory-chip manufacturer SK Hynix reported a more than sevenfold increase in quarterly profit, supported by strong demand for artificial intelligence infrastructure. Meanwhile, weakness in shares of Tesla and Apple limited gains across the broader market.
Chipmakers Gain Following SK Hynix Results
Micron Technology shares rose 4.8% to their highest level in more than two weeks after SK Hynix reported stronger-than-expected quarterly earnings. SK Hynix’s U.S.-listed shares climbed 12.2%.
The Philadelphia Semiconductor Index gained 0.9%, putting it on track for a fourth consecutive session of gains.
The results reinforced optimism surrounding continued investment in AI infrastructure and demand for memory chips used in advanced computing systems.
Major Technology Stocks Weigh on the Market
Several large-cap growth stocks moved lower, tempering the broader market’s advance.
Tesla shares fell 1.3% after rising more than 9% over the previous two sessions. Apple declined 0.5%, while SpaceX dropped 2.4%.
At 11:39 a.m. Eastern Time, the major U.S. indexes were mixed but modestly higher:
- Dow Jones Industrial Average: Rose 155.89 points, or 0.30%, to 52,533.46.
- S&P 500: Gained 16.89 points, or 0.22%, to 7,739.58.
- Nasdaq Composite: Added 4.35 points, or 0.02%, to 26,482.16.
Six of the S&P 500’s 11 major sectors advanced, with energy leading gains as crude oil prices increased.
The Nasdaq has risen about 2% so far this week following a difficult first half of October. Sentiment toward artificial intelligence improved after Anthropic disclosed its U.S. initial public offering filing on Monday.
Microsoft and Alphabet Earnings Under Scrutiny
Investors turned their attention to quarterly results from Microsoft and Alphabet, both scheduled to report after the market closes on Wednesday. Analysts expect accelerating cloud growth at both companies.
Market participants will closely examine their capital expenditure plans to determine whether substantial AI investments are generating sufficient returns.
Concerns about financing these investments through debt have grown as borrowing costs rise. Nadia El Bilassy, senior market analyst at Equiti Group, said investors remain concerned about the growing debt burden associated with AI expansion, even as demand for the technology continues.
Alphabet shares rose 1% following a media report that OpenAI planned to purchase Google’s AI chips.
Vertiv Surges, Boston Scientific Falls
Outside the largest technology stocks, corporate earnings and updated forecasts drove significant moves in individual shares.
Digital infrastructure provider Vertiv surged 13.2% after raising its full-year revenue and profit forecasts and reporting third-quarter results above analysts’ expectations.
Boston Scientific fell 6.6% after the medical device manufacturer lowered its annual profit forecast.
Third-quarter earnings growth for S&P 500 companies was estimated at 31.8%, up from the 31% forecast a week earlier, according to LSEG data.
Federal Reserve Decision Takes Center Stage
The Federal Reserve was scheduled to announce its policy decision at 2 p.m. Eastern Time on Wednesday. Markets broadly expected policymakers to pause following the previous month’s rate increase.
Investors were particularly focused on comments from Fed Chair Kevin Warsh for signals about the future direction of monetary policy.
Despite expectations for a pause, traders continued to anticipate at least three additional quarter-percentage-point rate increases by late 2027, according to LSEG data. Persistent inflation, partly driven by higher energy costs associated with the Middle East conflict, has strengthened expectations that monetary policy could remain restrictive.
Thursday’s Personal Consumption Expenditures report, the Fed’s preferred inflation measure, is expected to provide another important indication of price pressures. Third-quarter gross domestic product data, forecast to show 3.2% growth, is also due this week.
Market Breadth Remains Weak
Declining stocks outnumbered advancing issues by 1.38 to 1 on the New York Stock Exchange and by 1.05 to 1 on the Nasdaq.
The S&P 500 recorded 19 new 52-week highs and 11 new lows. The Nasdaq Composite registered 62 new highs and 141 new lows.
The session reflected a market balancing enthusiasm for AI-related semiconductor demand against uncertainty over corporate spending, financing costs and the Federal Reserve’s next policy moves.
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