Nasdaq Edges Up 0.20% to 26,530 as SK Hynix’s 632% Profit Surge Offsets Fed Jitters Ahead of Microsoft, Alphabet Earnings

Mumbai, 28 October 2026: The Nasdaq Composite (^IXIC) opened Wednesday’s session on a positive note, rising 0.20% to 26,530.45, a gain of 52.64 points, as investors digested a mixed set of corporate earnings and positioned themselves ahead of the US Federal Reserve’s interest rate decision and quarterly results from technology heavyweights Microsoft and Alphabet.

The tech-heavy index’s modest advance came despite a flat opening for the Dow Jones Industrial Average (^DJI), which hovered around the flatline with a marginal gain of 0.09% to 52,424.88, up 47.31 points. The broader S&P 500 (^GSPC) added 0.12% to reach 7,731.84, an increase of 9.24 points, while the small-cap Russell 2000 (^RUT) outperformed with a 1.16% jump to 2,818.87, gaining 32.45 points. Trading volumes were substantial, with the Nasdaq recording a volume of 1,101,963,000 shares, reflecting active participation as the market opened. The session’s early movements were characterised by a distinct rotation into semiconductor stocks, triggered by blockbuster earnings from South Korea’s SK Hynix, which reported a staggering 632% year-over-year surge in operating profit.

This robust performance from the memory chip giant provided a powerful catalyst for the technology sector, helping to counterbalance broader anxieties surrounding the Federal Reserve’s imminent policy announcement and the looming capital expenditure guidance from major cloud service providers. The 52-week range for the Nasdaq Composite stands between 20,690.25 and 27,722.75, indicating significant room for movement as the year progresses.

SK Hynix’s 632% Operating Profit Surge Ignites Semiconductor Stocks, Micron and AMD Rally

The most significant catalyst for the technology sector’s early gains was the exceptional financial performance reported by SK Hynix Inc. (SKHY), a major South Korean memory chipmaker. The company announced a 328% jump in quarterly revenue to approximately $78.7 billion, while operating profit skyrocketed by 632% to about $62.7 billion, delivering an extraordinary operating margin of 80%. Revenue and operating profit increased by 32% and 38%, respectively, from the previous quarter.

This stellar performance was driven by surging demand for artificial intelligence data centres, elevated memory prices, and early shipments of HBM4 chips, which the company expects to replace HBM3E as its mainstream product. The announcement sent shockwaves through the semiconductor industry, triggering a broad rally in chip-related stocks. US-listed shares of SK Hynix (SKHY) surged 10.55% in premarket trading, while peer Samsung Electronics (005930.KS) gained 5%. In the US market, Micron Technology (MU) rose 4.97%, Advanced Micro Devices (AMD) climbed 1.31%, and Arm Holdings (ARM) advanced 1.66%. Intel (INTC) added 0.67%, Marvell Technology (MRVL) increased 2.76%, and Applied Materials (AMAT) gained 2.63%. Lam Research (LRCX) surged 3.13%, and KLA Corporation (KLAC) added 2.00%, reflecting a sector-wide uplift. Broadcom (AVGO) also posted a gain of 2.24%, with the company’s CEO having previously negotiated for a consortium of banks to announce a $63 billion financing structure for building AI compute capacity, further fuelling positive sentiment.

The ripple effects were felt across the Nasdaq 100 heatmap, with Texas Instruments (TXN) dipping 1.00% and Qualcomm (QCOM) shedding 0.36%, while Analogue Devices (ADI) fell 1.06%, indicating some profit-taking in specific names despite the broader sector strength. This surge in chip stocks is a critical development as it directly addresses recent investor concerns regarding the financing and sustainability of the AI build-out.

Fed Set to Hold Rates at 3.75%-4% at 2 PM, Warsh’s Hawkish Bias in Focus for Markets

The primary event looming over the market is the conclusion of the Federal Reserve’s two-day policy meeting, with the interest rate decision scheduled for announcement at 2 p.m. ET and Fed Chair Kevin Warsh’s press conference at 2:30 p.m. ET. The central bank is widely expected to leave its benchmark interest rate unchanged in the 3.75% to 4% range. According to the CME’s FedWatch tool, markets are pricing in roughly a 90% probability of the Fed holding rates steady.

However, investors will be scrutinising Warsh’s commentary for any signals regarding the future path of monetary policy. The Fed raised rates by a quarter percentage point at its September meeting, and despite elevated inflation readings, the expectation is for a pause. Market participants are currently pricing in a 9% likelihood of a 25-basis-point rate hike during the October meeting, with an 86% chance of a hike at the December meeting, per the CME FedWatch tool. The decision comes just days before the midterm elections, adding a layer of political sensitivity to the proceedings. Treasury yields moved higher as investors awaited the decision, with the 10-year Treasury note yield, the main benchmark for mortgages and auto loans, rising more than one basis point to 5.0092%.

The yield on the 2-year Treasury note, which more closely follows short-term Fed decisions, was flat at 4.7453%, while the 30-year Treasury yield was up by more than one basis point at 5.3157%. The Fed’s decision and Warsh’s subsequent remarks will be pivotal in setting the tone for market direction in the coming weeks, as investors look for clarity on whether the central bank is done hiking or if further tightening remains on the table.

Also Read: What Is the New York Stock Exchange (NYSE)?

Microsoft and Alphabet Earnings After the Bell to Reveal AI Capex and Cloud Demand Trends

Attention will shift to the technology sector after the closing bell, as two of the “Magnificent Seven” giants, Microsoft (MSFT) and Alphabet (GOOGL), are set to report their latest quarterly results. These earnings are critical as they will provide fresh insights into AI demand, cloud computing growth, and the capital expenditure plans of the companies leading the AI build-out.

Alphabet shares were up 1.16% in premarket trading, while Microsoft was marginally lower by 0.05%. Wall Street expects Alphabet to earn $3.02 per share on sales of $128 billion, according to analyst estimates. Microsoft is expected to report earnings of $4.72 per share on revenue of $90.6 billion. The results from these two cloud and AI leaders will be scrutinised for indications of whether the massive spending on AI infrastructure is translating into tangible revenue growth.

Microsoft’s report comes just after it offered buyouts to up to 60,000 employees as it tries to streamline operations amid the AI build-out, a move that underscores the company’s focus on efficiency. Other notable companies due to report include Ford (F), GE Vernova (GEV), T-Mobile US (TMUS), eBay (EBAY), Chipotle Mexican Grill (CMG), and ServiceNow (NOW). The aggregate guidance from these reports will be instrumental in shaping market sentiment for the remainder of the week, particularly regarding the sustainability of the technology sector’s rally.

Wendy’s Shares Jump 16.69% on Report of $1.4 Billion Buyout Offer from Nelson Peltz’s Trian

In a significant piece of corporate news, shares of The Wendy’s Company (WEN) surged 16.69% to $7.17 in premarket trading following a report that billionaire investor Nelson Peltz’s Trian Partners has offered $1.4 billion to take the struggling fast-food chain private. The activist firm, a long-time shareholder in Wendy’s, is leading the deal with other partners including investment firms BlueFive Capital and Sixth Street Partners.

The offer comes after nearly two years of struggles for Wendy’s as it competes with industry behemoths like McDonald’s (MCD) and Yum! Brands (YUM), Taco Bell, plus upstart competitors such as Shake Shack (SHAK). The company is reportedly on the cusp of a large number of restaurant closures, with one of its largest franchisees filing for bankruptcy in September.

Analysts have noted that there are likely additional franchise operators in the system facing challenges with leveraged balance sheets, higher interest rates, and profitability pressures from elevated beef, labour, and build costs. The potential buyout offer represents a significant development for the fast-food sector and could signal further consolidation activity in the industry.

Robinhood Shares Plunge 4.27% on Weak Q3 Earnings and AI Trading Risk Warning

Shares of Robinhood Markets (HOOD) fell 4.27% to $90.53 after the online brokerage reported weaker-than-expected third-quarter profits. The company’s net income fell to $468 million from $556 million the previous year. Robinhood reported earnings of 51 cents per share, below analyst expectations of 56 cents per share.

Revenue came in at $1.42 billion, in line with consensus estimates, but transaction-based revenue of $867 million fell short of the $879 million expected by analysts. The decline in profit was attributed to declining net interest income and a plunge in cryptocurrency trading revenue. The company also issued a warning in its third-quarter regulatory filing that its new artificial intelligence agents could execute unintended trades and expose the platform to new regulatory and legal risks.

Robinhood opened its platform to AI agents in May and began rolling out an in-app version last month. The company acknowledged that courts or regulators might not uphold its customer agreements that assign responsibility for trades to customers.

The weaker earnings and the new risk warnings overshadowed the company’s record trading activity in stocks, options, and prediction markets. Robinhood shares were on pace to break below their long-term 200-day moving average and trade at their lowest level since early August.

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S&P 500 Heatmap Shows Divergent Sector Performance as GE Vernova Sinks 6.11%

The S&P 500 heatmap revealed a mixed picture across sectors, with significant movements in individual stocks. General Dynamics Corporation (GD) fell 0.43%, while GE Vernova (GEV) plummeted 6.11%, making it one of the worst performers in the index.

The industrial sector showed mixed results, with Caterpillar (CAT) adding 0.06%, Deere (DE) gaining 0.22%, and Eaton (ETN) rising 1.45%, while RTX (RTX) fell 0.22% and Lockheed Martin (LMT) shed 0.58%. In the technology space, Broadcom (AVGO) was a standout performer, rising 1.80%, while Oracle (ORCL) dipped 0.27%. The healthcare sector showed some weakness, with Abbott Laboratories (ABT) falling 0.61%, Amgen (AMGN) shedding 0.29%, and Gilead Sciences (GILD) down 0.46%. Consumer staples were largely lower, with Walmart (WMT) down 0.90%, Costco (COST) falling 1.06%, and PepsiCo (PEP) declining 0.94%.

The energy sector was a bright spot, with Exxon Mobil (XOM) gaining 0.49%, Chevron (CVX) rising 0.08%, and ConocoPhillips (COP) adding 0.48%. The utilities sector was under pressure, with NextEra Energy (NEE) falling 1.05% and Constellation Energy (CEG) down 0.50%. The materials sector also saw declines, with Linde (LIN) falling 0.88% and Newmont (NEM) dropping 1.04%. These sector-specific movements indicate a market that is carefully evaluating individual company prospects while awaiting the broader macro catalysts from the Fed and major earnings reports.

Cheesecake Factory Falls 2.79% Despite Q3 Earnings Beat, Visa Drops 1.63%

In the restaurant sector, Cheesecake Factory (CAKE) shares dipped 2.79% to $105.45 even after its latest earnings exceeded expectations on the top and bottom lines. The restaurant chain posted third-quarter earnings of $1.02 per share, excluding items, on revenues of $1.03 billion. Analysts had expected per-share earnings of 95 cents on revenues of $1.00 billion.

The stock was already running hot into the print, up more than 110% year to date and having rallied more than 20% over the last three months. This suggests that the market may have already priced in a strong performance, leading to a “sell the news” reaction.

In the financial sector, Visa (V) shares were 1.63% lower in premarket trading despite reporting fourth-quarter 2026 earnings of $3.48 per share on revenue of $12.14 billion, beating estimates. F5 Networks (FFIV) tumbled more than 7%, while Seagate Technology (STX) fell 3.05% despite beating first-quarter 2027 estimates with earnings of $7.68 per share on revenue of $4.23 billion.

UBS Group AG (UBS) was 1.73% lower after reporting third-quarter 2026 earnings of $0.85 per share on revenue of $13.35 billion, missing estimates. These mixed earnings reactions underscore the importance of forward guidance and valuation in the current market environment, where investors are quick to punish any perceived shortfall even in the face of headline beats.

Mortgage Rates Fall to 7.37% for Second Week, Applications Rise 3.4% as Consumers Return.

In a positive development for the housing market, mortgage rates fell for the second straight week, bringing consumers back to their brokers. Total mortgage application volume rose 3.4% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less decreased to 7.37% from 7.41%, with points increasing to 0.76 from 0.75. A growing share of applicants, however, applied for riskier loans at even lower rates. The decline in mortgage rates, coupled with the recent pullback in Treasury yields, could provide some support to the housing sector, which has been sensitive to the elevated interest rate environment.

This data point is particularly relevant as it reflects the real-economy impact of the Federal Reserve’s monetary policy stance and could influence the central bank’s thinking as it deliberates on future rate decisions.

Also Read: US Stock Market Timings 

Crude Oil Tops $102 a Barrel, 10-Year Treasury Yield at 5.01% as Markets Await Fed.

Commodity and bond markets also showed significant movements. West Texas Intermediate (WTI) crude oil futures climbed 2% to around $102.05 a barrel, while Brent futures rose 1.56% to hover around $111.12 per barrel. The rise in oil prices comes amid geopolitical tensions and supply concerns, adding to the inflationary pressures that the Federal Reserve is monitoring. Gold Spot US Dollar fell 0.22% to hover around $4,053.51 per ounce.

The US Dollar Index spot was 0.01% higher at the 102.3784 level. In the cryptocurrency market, Bitcoin (BTC) was trading at $81,410 per coin, up about 2.3% over the past 24 hours. The 10-year Treasury yield edged up to 5.01%, a level that is closely watched by equity investors as it influences borrowing costs and valuation models.

The combination of rising oil prices, elevated Treasury yields, and a firm dollar creates a challenging backdrop for equities, particularly for growth stocks whose valuations are sensitive to discount rates. However, the positive earnings surprises from the technology sector have thus far outweighed these macro concerns, allowing the Nasdaq to maintain its modest gains.

Russell 2000 Outperforms with 1.16% Gain as Small-Cap Stocks Show Resilience.

The Russell 2000 Index (^RUT) was a notable outperformer in early trading, rising 1.16% to 2,818.87, a gain of 32.45 points. The small-cap index’s 52-week range spans from 2,303.46 to 3,069.71, indicating significant volatility over the past year.

The Russell 2000 heatmap showed broad-based gains, with Ensign Group (ENSG) surging 7.54%, Twist Bioscience (TWST) jumping 6.55%, and Terex Corporation (TEX) gaining 6.62%. Brinker International (EAT) rose 7.91%, while PACS Group (PACS) added 4.03% and TXG (TXG) climbed 5.31%. On the downside, Zurn Elkay Water Solutions (ZWS) fell 6.67%, while IonQ (IONQ) dropped 2.41% and Chefs’ Warehouse (CHEF) declined 3.67%.

The strength in small-caps suggests that investors are finding value in sectors that are more domestically focused and less exposed to the global trade tensions that have weighed on larger multinational corporations. This rotation into small-caps could be a signal that the market is broadening out beyond the mega-cap technology names that have driven the bulk of the gains this year.

Dow Jones Heatmap: Amazon Rises 0.41%, UnitedHealth Gains 0.71% as Blue Chips Trade Mixed

The Dow Jones Industrial Average’s heatmap showed a mixed performance among its constituent companies. Amazon.com (AMZN) rose 0.41%, while UnitedHealth Group (UNH) gained 0.71% and IBM (IBM) added 0.65%. Salesforce (CRM) rose 0.86%, and Goldman Sachs (GS) gained 0.41%. On the negative side, Apple (AAPL) fell 0.50%, Walmart (WMT) dropped 0.90%, and Johnson & Johnson (JNJ) shed 0.44%. Nike (NKE) declined 0.49%, and Procter & Gamble (PG) fell 0.53%.

The mixed performance of the Dow components reflects the broader market’s indecision as investors weigh the positive earnings news from the technology sector against the uncertainty surrounding the Federal Reserve’s policy decision.

The Dow’s marginal gain of 0.09% to 52,424.88 belies the significant divergences within the index, with some stocks posting solid gains while others succumb to profit-taking. The 52-week range for the Dow spans from 45,057.28 to 54,744.33, indicating that the blue-chip index remains in a relatively strong position despite the recent volatility.

Market participants should closely monitor the Federal Reserve’s rate decision and Chair Kevin Warsh’s commentary at 2 p.m. ET for signals on the future policy path, as the current 3.75%-4% range is widely expected to hold. The subsequent earnings reports from Microsoft and Alphabet after the closing bell will be critical in assessing the trajectory of AI-related capital expenditure and cloud demand. Investors should also track the movements in Treasury yields, with the 10-year note at 5.01%, as this benchmark influences borrowing costs across the economy.