US stocks advanced on Wednesday after the Federal Reserve left interest rates unchanged, while gains in semiconductor shares supported Wall Street ahead of major technology earnings.
The S&P 500 rose 0.28% to 7,743.98, while the Nasdaq Composite gained 0.27% to 26,549.85. The Dow Jones Industrial Average climbed 97.53 points, or 0.19%, to 52,475.10. All three benchmarks recorded their third consecutive session of gains.
The Federal Reserve held its benchmark interest rate steady at 3.75% to 4%, following a quarter-point increase in September. Chairman Kevin Warsh reiterated that inflation remained too high but provided limited guidance on future policy moves.
Markets continued to price in another rate increase in December as policymakers assessed persistent inflation pressures and the strength of the US economy.
Technology stocks were supported by Oracle, which surged nearly 11% after forecasting revenue of US$225 billion by fiscal 2030 and outlining limits on future fundraising.
Semiconductor shares also rallied after South Korea’s SK Hynix reported record quarterly profit, sending its US-listed shares up 13%. Micron Technology gained nearly 6%, Arm Holdings rose 4%, while AMD and Marvell Technology each advanced around 3%.
The gains came ahead of quarterly earnings from Alphabet and Microsoft, with investors focused on AI spending, infrastructure investment and the sustainability of technology sector growth.
Oil prices moved higher, adding to inflation concerns and pushing US Treasury yields higher.
Australian Market Outlook
Australian shares are set to open higher, with S&P/ASX 200 futures up 40 points, or approximately 0.5%, to 8,900. The positive lead follows Wall Street’s gains after the Federal Reserve held interest rates steady, although expectations of further tightening and rising oil prices could temper sentiment. Locally, Lynas Rare Earths and Mineral Resources are scheduled to release quarterly updates, while Challenger, JB Hi-Fi, Perpetual, Super Retail, Wesfarmers and Woolworths will hold annual general meetings. Investors will also assess the latest US technology earnings, particularly results from Alphabet and Microsoft, for further indications of AI investment trends and their implications for global markets.
