Tech-led rally lifts Nasdaq 1.2%; Fed decision, Microsoft and Alphabet results due today
Wednesday, October 28, 2026 · as of Oct 28, 6:30 AM ET · covers the prior trading session
AI-linked chipmakers drove the Nasdaq up 1.18% on Tuesday, and Korea's KOSPI jumped 6.63% overnight on SK hynix's results. A much stronger-than-expected consumer confidence reading put the 2-year yield up 2 bp ahead of today's 2:00pm ET Fed decision. Europe is slightly lower and WTI is back above $101.
Key numbers
What mattered yesterday
- Tech carried Tuesday's session: the Nasdaq Composite rose 1.18% to 26,477.81 and the S&P 500 gained 0.60% to 7,722.60, while the Dow added just 0.03%. The technology sector ETF (XLK) jumped 3.42%. Tapeboard
- Chipmakers led after Broadcom said a bank consortium would provide $63 billion in financing tied to Anthropic's use of its technology. Meta's $25 billion share offering was reportedly oversubscribed fivefold. Trading Economics
- The Conference Board's October consumer confidence index came in at 91.7, against 84.2 prior and an 81 consensus. September durable goods orders rose 1.8% (consensus 1.5%). Trading Economics calendar
- Energy (−1.62%) and communication services (−1.83%) lagged. Boeing fell 10.69% and Xylem fell 14.21%. Tapeboard
- Overnight, Korea's KOSPI surged 6.63% to 6,012. SK hynix reported a more than sevenfold rise in Q3 operating profit, to 83.33 trillion won. Trading Economics
Market snapshot
Why it mattered
Reported: Gains were concentrated in AI-linked hardware. Consumer staples, energy and communication services fell (Tapeboard). Crude rose back above $101 after reports that the US had asked Gulf states to prepare for possible new action against Iran (TE). The 2-year yield edged up while the 10-year held near 5% (Treasury).
Our read (commentary, not investment advice): A strong confidence reading and firm durable goods orders make it harder for the Fed to sound dovish today. Leadership is narrow, so tonight's Microsoft and Alphabet results matter more than usual.
Today's calendar (ET)
- 8:30am: UK Autumn Budget; US September advance goods trade balance (prior −$132.1B, consensus −$130B)
- 10:30am: EIA crude inventories (prior −3.06M bbl)
- 2:00pm: FOMC rate decision (upper bound 4.00%, consensus hold); press conference at 2:30pm
- After the close: Microsoft, Alphabet
- Thu: 8:30am Q3 GDP advance (consensus 3.2%) and September PCE; 9:15am ECB decision; Amazon after the close; 11:00pm BoJ decision (TE)
Business lens
- Dairy (official, week ending Oct 17, vs prior week; USDA AMS): 40-lb block cheddar $1.3856/lb (−4.5¢), butter $1.3547 (−1.1¢), nonfat dry milk $1.9959 (+3.0¢), dry whey $0.7260 (+0.6¢). Barrel price unavailable. September FMMO all-market average: Class III $16.04/cwt, Class IV $18.94/cwt (same USDA source). CME spot prices, Class III/IV futures and this week's direction for cheese and butter: unavailable.
- Feed (Oct 27 settles; GX94): Dec corn $4.48¾ (−6¼¢), Nov soybeans $12.29¼ (−12¢), Dec Chicago wheat $6.10¼ (−5¾¢). Soymeal unavailable.
- Fuel: US on-highway diesel averaged $6.352/gal for the week of Oct 26, up 7.6¢ from the prior week (EIA).
- Freight: current-week data unavailable.
- Rates: SOFR is at 3.93% and the 10-year is just under 5%, so financing costs stay elevated.
Our read: Butter near $1.35 caps the butterfat side of Class IV, but NDM near $2.00 keeps Class IV well above Class III. Weaker block cheese is a headwind for Class III. Cheaper corn and soybeans help feed margins, while diesel above $6 erodes them on the delivery side.