Chipmakers lift US indexes for a second day before Fed decision

what happened

Chip stocks led US equities higher on Tuesday, October 28, and the major indexes closed in positive territory for a second straight session, per TradingView. The Nasdaq Composite outperformed its peers with a 1.2% gain, while the S&P 500 added 0.6%. The Dow Jones finished flat, held back by Boeing, whose shares sank 11% to an 18-month low after it lowered its full-year plan for aircraft deliveries.

Broadcom was the main driver, climbing as much as 4% after a group of lenders headed by Bank of America, Citi and Morgan Stanley unveiled $63 billion in funding that will let Anthropic buy Broadcom technology. AMD and Micron rose between 3% and 5% in its wake. Meta Platforms slipped 1.6% despite a $25 billion share sale that drew five times the total demand, and the stock had already dropped nearly 2% on Monday.

The evening's main event is the Fed's rate decision. The CME FedWatch tool puts the probability of unchanged rates at 94%. Investors will focus on Chair Kevin Warsh's remarks on whether a December hike is possible and why none came this month. Alphabet and Microsoft report after the close. The 10-year Treasury yield hovers near 5%, while the dollar index is nearing 102.5.

why it matters

Chip demand and the Anthropic financing deal support the AI infrastructure theme. The next move in yields and the dollar will depend on the Fed's tone and on how large tech companies explain their spending and cash flow.

market impact

US chipmakers and Broadcom: AI hardware demand supports shares; Boeing: lower delivery plans weigh on the stock

• ▲Broadcom pressure up — a $63 billion financing package for buying its technology supports demand
• ▼Boeing shares pressure down — cut aircraft delivery targets pressure the stock

tags

instruments