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Fed holds rates steady as weak Alphabet results weigh on Nasdaq futures

The Fed kept its 3.75%-4% target range and changed its meeting schedule, while Alphabet results disappointed. Nasdaq 100 futures fell 1.2%, according to Stocktwits.

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what happened

US stock indices closed higher on Wednesday, with the S&P 500 up 0.3%, the Nasdaq 100 up 0.5% and the Dow Jones up 0.2%. Support came from the Federal Reserve's choice to leave its rate in the 3.75%-4% range amid elevated inflation and a strong labor market. The vote was 10 to 2.

Investors focused more on Chair Kevin Warsh's announcement of a structural change to how often the Fed sets rates. In 2027 the committee will issue rate decisions at seven of its eight scheduled meetings, using one session only for broad policy strategy with no formal statement. By 2028 the number of rate-setting votes will drop to six a year, Stocktwits reported.

Alphabet shares fell about 11% after hours following its third-quarter report. Revenue growth in digital advertising and cloud was strong, but heavy spending on AI infrastructure and investment losses squeezed profits. Oracle rallied about 11% after projecting positive net cash flow, Nvidia slipped 1% on reports that the US Justice Department is asking about its planned Hugging Face deal, and Lumentum jumped 10% on reports that Marvell is in talks to buy it.

why it matters

The key takeaway for markets is that the Fed is not rushing to change course, while AI spending remains the main risk for large technology companies. Rate expectations shape how investors value growth, so AI-linked stocks stay sensitive to earnings from big companies and to any sign of returns on their investments.

market impact

Alphabet and AI stocks: weak profit and AI spending weigh on shares, while the Fed's hold supports the broader market

  • Alphabet shares pressure down — weak profit amid heavy investment in AI infrastructure
  • Nasdaq 100 mixed — weak Alphabet report offset by support from the Fed holding rates

tags

ETFEarningsEconomyLaborMonetary PolicyInflationStockUnited States

instruments

S&P 500Nasdaq 100GOOGLNVDAORCLLITE

sources

  1. S&P 500, Nasdaq Futures Dip As Weaker-Than-Expected Alphabet Earnings Reignite AI Spending Worries — GOOGL, MSFT, ORCL, NVDA, MRVL In Focus — Stocktwits, 29 October 2026 at 00:10 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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