TLDR
- US stock futures were mixed early Wednesday, with Dow futures down 0.2% to 0.3% and Nasdaq-100 futures up 0.3% to 0.5%.
- The Fed is expected to hold rates at 3.75% to 4%, with a 92% chance of no change, according to CME FedWatch.
- Microsoft and Alphabet report earnings after the bell, with investors watching AI demand and spending plans.
- Broadcom rose 4% on Tuesday after banks announced $63 billion in financing tied to chips and networking gear leased to Anthropic.
- Microsoft offered buyouts to up to 60,000 employees ahead of its report.
US stock futures were mixed early Wednesday as investors waited for a Federal Reserve decision and earnings from two of the largest tech companies. Dow futures fell between 0.2% and 0.3%. S&P 500 futures were close to flat.
Nasdaq-100 futures rose between 0.3% and 0.5%. The tech-heavy index has gained for two straight sessions this week.
The major averages all ended Tuesday higher. The Nasdaq Composite rose 1.2% on the day.
Broadcom Financing Lifts Chip Stocks
Chip stocks led Tuesday’s rally. Broadcom said a group of banks would provide $63 billion in financing to buy its chips and networking products.
Those products will be leased to Anthropic, the company behind Claude. The financing is meant to help build AI computing capacity.
Broadcom shares rose 4% after the news. Advanced Micro Devices climbed 5.5%, and Micron Technology gained 2.8%.
Lower oil prices also helped stocks on Tuesday. Prices fell after reports that Iran’s Supreme Leader Mojtaba Khamenei met with security official Mohsen Rezaei. They discussed conditions for ending the war with the US.
Fed Decision Due at 2 p.m. ET
The Federal Reserve wraps up its two-day policy meeting on Wednesday. The decision will be announced at 2 p.m. ET.
🚨 REMINDER: 🇺🇸 FED INTEREST RATE DECISION TODAY AT 2:00 PM ET!
Current: 3.75% – 4.00%
Forecast: 3.75% – 4.00%HIKE → MARKETS DROP HARD
HOLD → MARKETS RALLY
CUT → MARKETS RALLY HARDFED CHAIR WARSH’S PRESS CONFERENCE AT 2:30 PM ET!
EXPECT HUGE VOLATILITY! pic.twitter.com/ST0LRPqTLi
— Crypto Rover (@cryptorover) October 28, 2026
Markets widely expect the central bank to keep its target range at 3.75% to 4%. The Fed raised rates by a quarter percentage point at its September meeting.
CME’s FedWatch tool shows about a 92% chance of no change. Some investors think Fed Chairman Kevin Warsh may signal more rate hikes at future meetings.
Inflation readings remain elevated. Warsh’s press conference will be watched for any sign of a hawkish tone.
Microsoft and Alphabet Report After the Bell
Microsoft and Alphabet will kick off Big Tech earnings after markets close. Both companies are leaders in cloud computing. Investors want updates on AI demand and spending plans.
Microsoft’s report follows news that it offered buyouts to up to 60,000 employees. The company is trying to streamline operations as it builds out AI infrastructure.
Tech stocks tied to the AI buildout have struggled in recent weeks. Investors have questioned how the technology is being financed.
Morgan Stanley’s chief US equity strategist, Mike Wilson, said the correction may be mostly over. He spoke on CNBC’s “Closing Bell” on Tuesday. “We’ve been in correction mode for four or five months,” he said.
Ford, GE Vernova, T-Mobile US, eBay, Chipotle Mexican Grill, and ServiceNow also report earnings this week.
In Asia, Japan’s Nikkei 225 closed 1.08% higher. South Korea’s Kospi rose 6.63%, and China’s CSI 300 gained 0.85%.
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