Wall Street ends higher as Fed holds key rate steady, focus turns to earnings

Live updates

1. 1h ago

   Wall Street Rises as Federal Reserve Holds Key Rate Steady

   Wall Street indexes advanced after the US Federal Reserve kept its key policy rate steady in a split vote. The Dow Jones Industrial Average added about two tenths of a percent, while the S&P 500 and the Nasdaq each climbed more. Investors shifted attention toward corporate earnings reports and a potential rate hike at the central bank's next meeting in December. Data from LSEG indicates that 84 percent of S&P 500 companies reporting earnings have beaten consensus estimates. Meanwhile, chip stocks received a lift from SK Hynix, and ship strikes near the Strait of Hormuz kept fuel prices elevated.

   Why it matters

   The Federal Reserve's decision to pause rate adjustments ahead of midterm elections brought political scrutiny, though Warsh stated that politics played no role in the outcome. Analysts debate whether a gradual approach risks forcing the central bank to play catch-up against inflation. Concurrently, regional logistical disruptions and vessel attacks near the Strait of Hormuz continue to squeeze Iranian oil revenue while maintaining high fuel costs globally.

   What is confirmed

   • Wall Street indexes advanced after the US Federal Reserve left its key policy rate unchanged.
   • The Dow added about two tenths of a percent, while the S&P 500 and the Nasdaq each added more.
   • 84 percent of S&P 500 firms that have posted earnings beat consensus estimates, according to LSEG data.

   Still unconfirmed

   • Investors are betting on a rate hike at the next monetary policy meeting in December.
   • Warsh stated that politics played no role in the split rate decision ahead of midterm elections.
   • Ship strikes near the Strait of Hormuz are keeping fuel prices elevated while constraining Iran's oil revenue.

   What to watch next

   • Upcoming corporate earnings reports from remaining S&P 500 companies
   • Federal Reserve monetary policy meeting decisions regarding a December rate hike
   • Developments regarding shipping and insurance costs near the Strait of Hormuz
   Sources used for this update (10)

   1. Reuters — S&P 500, Nasdaq open higher as SK Hynix lifts chips; Fed in focus
   2. Yahoo Finance — Fed meeting live updates: Interest rates held steady in split vote, Warsh says politics played 'no role' ahead of midterm elections
   3. WSJ — Kevin Warsh’s Judicious Pre-Election Pause
   4. The New York Times — In Moving Gradually, Fed Risks Having to Play Catch-Up to Quell Inflation
   5. MarketWatch — Did the Fed make a mistake with its October rate pause? The Treasury could help save the day.
   6. www.briefs.co — US-Iran ship attacks are keeping fuel pricey while squeezing Iran's oil cash
   7. www.straitstimes.com — US stocks rise as Fed holds rates steady | The Straits Times
   8. www.businesstimes.com.sg — Wall Street ends higher as Fed holds key rate steady, focus ...
   9. www.yahoo.com — Wall Street ends higher as Fed holds key rate steady - Yahoo
   10. www.klsescreener.com — Wall Street ends higher as Fed holds key rate steady, focus ...
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