US Stocks Drift as Caution Sets In Ahead of Fed: Markets Wrap
(Bloomberg) — US stock futures struggled to follow through on Asia’s tech-led gains as rising oil prices introduced a note of caution ahead of the Federal Reserve’s interest-rate decision and earnings from artificial intelligence giants.
S&P 500 futures were little changed. Brent crude topped $115 a barrel following a report that the US may resume military strikes on Iran after next week’s midterms, with traders also tracking a tight election in Israel. The Nasdaq 100 was set for a third straight day of gains as blowout results from memory giant SK Hynix Inc. lifted shares tied to the AI buildout.
Traders are rotating back into tech stocks on renewed confidence that AI spending will pay off ahead of results from Microsoft Corp. and Alphabet Inc. due after the close. Attention is also turning to the Fed, which is widely expected to leave interest rates unchanged on Wednesday. Treasury yields edged higher ahead of the decision, while the dollar was little changed.
“There are enough signs that the tech positioning flush-out has run its course, which has helped this latest tech rebound,” said Jai Malhi at Vanda Research. “SK Hynix’s strong earnings is a welcome start, but capex guidance from the major hyperscalers are a key risk so this hurdle may keep some investors at bay until those earnings are delivered.”
If the Fed stays put, Chairman Kevin Warsh could face pressure to explain policymakers’ rationale for not acting now after they voted unanimously last month to raise rates to address burgeoning inflation.
There is a huge amount of event risk on Wednesday, so tonight’s Fed meeting almost feels like an afterthought,” said Kathleen Brooks, research director at XTB. “This is a dangerous mindset for investors, however,” she said, as US rates are seen rising as much as 75 basis points over the next year.
Europe’s Stoxx 600 fell 0.2%, with the rise in crude prices weighing on economically sensitive stocks. ASM International NV rose as much as 5% after the chip-equipment maker lifted its outlook. Banks were mixed on a busy day for earnings.
The FTSE 100 fell 0.3% in the run-up to UK Chancellor of the Exchequer John Healey’s first budget. The pound was a laggard among major currencies, while UK gilts were modestly weaker.
Corporate Highlights:
Robinhood Markets Inc. slumped 8% in US premarket trading after the brokerage reported third-quarter earnings per share that missed consensus estimates. UBS Group AG shares dipped after the lender posted a set of results broadly in line with estimates after a choppy quarter. BNP Paribas SA reported a surge in revenue from equities trading and announced a new share buyback. The shares fluctuated. Deutsche Bank AG rose more than 3% after posting fixed-income trading revenue that outperformed Wall Street banks in the third quarter. Standard Chartered Bank Plc climbed 3% after an earnings beat that analysts described as “broad-based.” Banco Santander SA dropped 3% after posting third-quarter net income in line with analysts’ estimates. GSK Plc slumped 5% after reporting third-quarter earnings that showed a decline in vaccine sales. Unilever Plc declined as the consumer-goods company’s struggles in North America and Europe overshadowed strong emerging-market sales. Logitech International SA slumped 11% after saying the late-June shutdown of a semiconductor supplier facility would negatively affect third-quarter sales. Adyen NV sank 13% after the payments firm said it would discontinue medium-term profit guidance. Stellantis NV rose more than 4%. The struggling carmaker stuck to guidance for the year as it fights to reduce costs, improve quality and roll out new models to counter intensifying competition particularly in Europe. BASF SE raised its full-year outlook for a second time this year after prices surged and volumes also rose, helping to cushion the chemicals maker from competition in China. OpenAI intends to buy artificial intelligence computing chips from Alphabet Inc.’s Google, according to a person familiar with the matter. Nomura Holdings Inc.’s profit rose last quarter, led by wealth management, stock trading and investment banking. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 5:55 a.m. New York time Nasdaq 100 futures rose 0.4% Futures on the Dow Jones Industrial Average fell 0.2% The Stoxx Europe 600 fell 0.3% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1125 The British pound fell 0.2% to $1.3284 The Japanese yen was little changed at 157.87 per dollar Cryptocurrencies
Bitcoin rose 0.9% to $81,377.62 Ether rose 1.1% to $2,367.2 Bonds
The yield on 10-year Treasuries advanced one basis point to 5.01% Germany’s 10-year yield advanced one basis point to 3.37% Britain’s 10-year yield advanced one basis point to 5.36% Commodities
West Texas Intermediate crude rose 1.7% to $101.58 a barrel Spot gold fell 0.2% to $4,053.17 an ounce This story was produced with the assistance of Bloomberg Automation.
©2026 Bloomberg L.P.
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