Stocks Rise Before Fed Decision, Led by Tech: Markets Wrap

(Bloomberg) — Technology stocks drove equities higher for a second day as investors looked ahead to megacap earnings and the Federal Reserve’s interest-rate decision. The dollar steadied while gold briefly topped $5,300 an ounce.

Futures on the Nasdaq 100 rose 0.7%, with the benchmark poised to move within touching distance of its October record. S&P 500 contracts pointed to the index testing the 7,000 mark. The greenback advanced 0.3% after the currency plunged to the lowest level in nearly four years on Tuesday.

The move in US futures follows a sharp increase in orders at chip-equipment maker ASML Holding NV that sent the stock soaring as much as 7.5% in Amsterdam. Asian tech stocks also advanced after SoftBank Group Corp. said it was in talks to invest $30 billion in OpenAI. In South Korea, unprecedented memory demand boosted SK Hynix Inc.’s profit.

Europe’s benchmark failed to follow the global trend, declining 0.4% as a Goldman Sachs Group Inc. basket of luxury stocks fell the most in five months after LVMH reported weak sales.

The general upbeat mood in stocks comes as investors expect the Fed to remain on hold and price in about two 25 basis-point cuts for 2026. Three of the Magnificent Seven heavyweights — Microsoft Corp. Tesla Inc. and Meta Platforms Inc. — report later on Wednesday.

“I think that the tech sector is likely to lift markets further, so the rally isn’t over yet,” said Claudia Panseri, chief investment officer for France at UBS Wealth Management. “If one adds possible interest rate cuts from the Fed, that’s another positive factor moving forward.”

With the economy still displaying exceptional strength, the Fed’s messaging is likely to emphasize a data‑driven approach to future policy decisions, according to Chris Brigati at SWBC. Investors will also look for any impact on the dollar.

While a weaker dollar boosts exports, the US has about $39 trillion of debt, said Rob Kaplan, Goldman Sachs Group Inc. vice chairman. When you have that much debt, stability of the currency trumps exports, Kaplan said in an interview with Bloomberg TV’s Stephen Engle in Hong Kong.

“The US is going to want to see a stable dollar and wants to see stability, and wants to be able to sell the long end of the Treasury curve,” Kaplan said. “A stable dollar helps.”

Corporate Highlights:

ASML Holding NV’s orders in the fourth quarter exceeded analysts’ expectations, as the rapid development of artificial intelligence infrastructure boosted demand for its cutting-edge chip-making machines. SK Hynix Inc. reported its strongest quarterly results to date, underscoring the depth of an artificial intelligence wave that’s triggered an unprecedented surge in memory demand. Sales at LVMH’s key fashion unit fell over the holiday season as the Louis Vuitton owner continued to suffer from sluggish demand. Volvo AB said truck demand is improving in some markets as customers return after months of weak freight conditions and policy uncertainty. Texas Instruments Inc., the biggest maker of analog chips, gave a strong revenue forecast for the current period, indicating that demand for industrial equipment and vehicles is beginning to rebound. Amazon.com Inc. employees who have been anticipating layoffs numbering in the thousands got one more thing to worry about late Tuesday: a meeting invite and email from a top executive that was sent prematurely. Some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 0.4% as of 9:38 a.m. London time S&P 500 futures rose 0.3% Nasdaq 100 futures rose 0.7% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 1.1% The MSCI Emerging Markets Index rose 1.7% Currencies

The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.4% to $1.1988 The Japanese yen fell 0.3% to 152.62 per dollar The offshore yuan fell 0.1% to 6.9423 per dollar The British pound fell 0.4% to $1.3790 Cryptocurrencies

Bitcoin rose 0.3% to $89,253.96 Ether fell 0.2% to $3,005.73 Bonds

The yield on 10-year Treasuries was little changed at 4.25% Germany’s 10-year yield declined two basis points to 2.86% Britain’s 10-year yield was little changed at 4.52% Commodities

Brent crude fell 0.2% to $67.41 a barrel Spot gold rose 1.9% to $5,276.29 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Julien Ponthus.

©2026 Bloomberg L.P.