S&P 500 and Nasdaq Rise as SK Hynix Earnings Lift Chip Stocks Ahead of Fed Decision

POLICY WIRE — New York, United States — The S&P 500 and the Nasdaq opened higher on Wednesday, propelled by gains among memory-chip firms following bumper results from SK Hynix. At the opening bell, the Dow Jones Industrial Average fell 42.1 points, or 0.08%, settling at 52,335.43. Meanwhile, the S&P 500 rose 13.0 points, or 0.17%, to 7,735.56, and the Nasdaq Composite advanced 63.8 points, or 0.24%, to reach 26,541.607.

Market participants turned their attention toward domestic monetary policy as the Federal Reserve prepared to conclude its two-day policy meeting. Central bank officials were widely anticipated to keep interest rates steady at a target rate range of 3.75% to 4%, following a quarter-percentage-point hike at their September gathering. According to CME’s FedWatch tool, a roughly 90% probability pointed to the Fed maintaining current borrowing costs, though analysts watched closely for any signals from Chairman Kevin Warsh regarding future policy tightening.

U.S.-listed shares of South Korean chipmaker SK Hynix surged 10% after the company reported record quarterly profit and revenue surpassing 100 trillion won for the first time. The stellar performance galvanized the broader semiconductor sector, lifting Micron Technology up 4%, Arm Holdings nearly 2%, Intel over 1%, Marvell Technology around 3%, and Advanced Micro Devices more than 2%.

Corporate reporting remained a dominant driver as investors awaited quarterly results from Magnificent Seven heavyweights Alphabet and Microsoft. Alphabet shares traded up more than 1% ahead of the bell, while Microsoft shares remained little changed. The upcoming announcements served as a crucial barometer for the artificial intelligence trade following a volatile period marked by questions over tech financing and sector valuations.

Reporting by Policy-Wire (PW)