Fed holds rates at 3.75-4.00% as markets split AI giants on who can self-fund

The S&P 500 rose 0.28% on its first gain in seven Fed days, Oracle jumped 10.7% after capping spending, and Alphabet fell about 10% after the bell on negative free cash flow.

Deepakshi

Kristal Research & Marketing team

29 Oct

Key takeaways — AI summary

The Federal Reserve held its benchmark rate at 3.75-4.00% in a 10-2 vote, with Cleveland Fed's Beth Hammack and Governor Lisa Cook dissenting for a quarter-point hike; Chair Kevin Warsh gave no steer, and money markets trimmed December hike odds to about 85% from 90%.
The S&P 500 rose 0.28% to 7,744 — its first gain on a Fed day in seven meetings — and the Nasdaq 100 added 0.55% to 29,813, but the equal-weight S&P was flat, showing gains concentrated in a few large names; the 10-year Treasury yield rose to 5.045% while the 2-year slipped to 4.73%.
Oracle surged 10.7% after capping new fundraising at $20 billion through fiscal 2030 and naming a fiscal 2027-28 spending peak; after the close Microsoft rose 2.6% on Azure growth of 48% and about $18.6 billion of free cash, while Alphabet slid about 10% on negative $9.1 billion free cash flow, wiping close to $400 billion off its value.
US crude rose 2.88% to $102.78 a barrel after the Wall Street Journal reported Washington told Gulf allies to prepare for possible military action against Iran after the midterms; prices eased to near $101.40 in Asian trade; gold edged down 0.68% to $4,039.
Abroad, the Bank of Canada raised rates a quarter point to 2.5% and signalled more, while New Zealand's central bank surprised by holding in a 4-3 vote; Nasdaq futures fell about 1% in Asia after Alphabet's miss.

Generated by Kristal AI · reviewed by the research desk

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