[New York Stocks] Mixed Ahead of Fed Rate Decision; Semiconductor Shares Rise

Oil prices rise across the board

U.S. stocks were mixed on Oct. 28 (local time), with buying focused on semiconductor-related shares. At the same time, investors appeared cautious ahead of the Federal Reserve's October Federal Open Market Committee (FOMC) meeting.

As of 10:07 a.m. in New York, the Dow was up 84.37 points, or 0.16%, from the previous session at 52,461.94. The large-cap S&P 500 rose 5.20 points, or 0.07%, to 7,727.57, while the tech-heavy Nasdaq fell 27.64 points, or 0.10%, to 26,450.16.

The New York Stock Exchange. New York, U.S. = Correspondent Hwang Yoonju

The market is focused on the press conference following the Fed's interest-rate decision. The Fed will announce its rate decision at 2 p.m. after concluding its two-day October FOMC meeting.

Markets see about a 90% chance that the Fed will leave its current rate of 3.75% to 4.00% unchanged. At its September meeting, the Fed raised rates by 0.25 percentage points. However, with inflationary pressures persisting, investors are watching to see whether Chair Warsh will signal the possibility of further rate hikes.

Semiconductor shares advanced after SK hynix reported record quarterly operating profit, driven by demand for AI memory. SK hynix said its third-quarter operating profit reached 83.3 trillion won, more than seven times the figure from the same period a year earlier.

SK hynix ADR rose 9% intraday, while Micron gained 4% and ARM rose 2%. Marvell Technology and AMD also advanced about 2% and 1%, respectively.

Investors are also watching earnings from major technology companies due this week, including Alphabet and Microsoft, which will report after the market closes today. AI-related stocks have recently swung amid concerns about financing the expansion of data center investment and the returns on that investment.

Mike Wilson, Morgan Stanley's U.S. equity strategist, said the recent rebound in technology stocks suggests that much of the market correction may already be behind us. Still, investors are looking for confirmation that increased AI investment will translate into sustainable revenue and profits.

Meanwhile, oil prices rose following reports that the United States could resume airstrikes on Iran after the midterm elections. The Wall Street Journal (WSJ) reported that the U.S. government had told Gulf Arab states to prepare for a brief but intense military operation against Iran after the midterm elections.

Prices also appeared to be supported by President Donald Trump's remarks at a campaign rally in Texas, where he said he could end the war with Iran on his own terms and stressed that Iran must be prevented from obtaining nuclear weapons.

On the New York Mercantile Exchange, U.S. West Texas Intermediate (WTI) crude for December delivery was up 1.98% from the previous session at $101.88 a barrel. On the ICE Futures Exchange, Brent crude was up 1.16% at $115.18 a barrel.

This content was produced with the assistance of AI translation services.