Global Markets Brace for Fed Decision and Big Tech Earnings Amid Mixed Futures and Shifting Sectors

U.S. equity futures presented a mixed picture early Wednesday as investors navigated the dual anticipation of crucial mega-cap technology earnings and a pivotal rate policy decision from the Federal Reserve.

While S&P 500 futures edged higher and Nasdaq-100 futures gained 0.5%, Dow futures experienced a slight dip of 0.2%.

Overnight in Asia, markets showed strength with Japan's Nikkei 225 closing 1.08% up and South Korea's Kospi surging 6.63%. Australia's S&P/ASX 200 remained flat, while Mainland China's CSI 300 saw a 0.85% increase.

Tuesday's U.S. trading session concluded on a positive note, driven notably by a rally in chip stocks. This surge was fueled by an announcement from Broadcom, detailing a $63 billion financing deal with a consortium of banks to supply chips and networking solutions for lease to AI company Anthropic. Broadcom itself rose 4%, while Advanced Micro Devices (AMD) climbed 5.5%, and Micron Technology saw a 2.8% increase. These strong performances propelled the Nasdaq Composite to a 1.2% rise.

Market sentiment was further bolstered by a decline in oil prices, following reports of a diplomatic push involving Iran's Supreme Leader Mojtaba Khamenei and top security official Mohsen Rezaei to discuss de-escalation with the U.S.

However, Wednesday's domestic focus sharply shifts to the Federal Reserve's monetary policy meeting. The central bank is widely expected to maintain interest rates at their current target range of 3.75% to 4%, a decision anticipated around 2:00 p.m. ET. Despite the expected pause, Chairman Kevin Warsh may hint at future rate hikes, a possibility reflected in CME's FedWatch tool showing a 92% chance of rates holding steady, yet with underlying expectations for potential future tightening.

Post-market close, investors' attention will pivot to the high-stakes "AI trade" as tech titans Alphabet and Microsoft — two of the "Magnificent Seven" — are set to unveil their latest earnings. These reports are keenly watched, especially after recent struggles in tech stocks, particularly those with AI exposure, amid lingering questions about the technology's financing.

Despite recent volatility, Morgan Stanley's chief U.S. equity strategist, Mike Wilson, suggests that "most of the correction is already over," noting that the market has efficiently digested the four to five months of corrective action.

Live Market Updates:

Mercedes-Benz sales slump, cuts guidance amid 'intensifying competition' from China
14 Min Ago

German luxury automaker Mercedes-Benz reported an 8% decline in third-quarter car sales to 407,232 vehicles, and subsequently cut its full-year guidance. The company attributed this slump to "intense competition" and a "challenging market environment" in China, where it faces growing pressure from domestic brands like BYD, Geely, and Xiaomi. Despite this, revenue rose to 30.7 billion euros ($34 billion) and net profit increased to 1.52 billion euros, thanks to strong sales in Europe and the U.S. CEO Ola Källenius highlighted consistent cost discipline and strong contributions from its Vans and Financial Services divisions as mitigating factors. The company now expects full-year revenue and free cash flow to come in slightly and significantly below previous expectations, respectively.

— Sawdah Bhaimiya

Santander’s third-quarter net profit dips 2.1%
17 Min Ago

Spain's largest bank, Santander, saw its reported net profit fall 2.1% year-on-year in the third quarter to 3.43 billion euros ($3.81 billion). This decline was partly due to 416 million euros in restructuring and integration costs following its acquisition of U.S. lender Webster Bank. However, underlying net profit rose 19% to 3.85 billion euros, with net interest income climbing to 11.83 billion euros. The bank reaffirmed its full-year 2026 guidance, targeting profit to surpass the 14.1 billion euros earned in 2025.

— Hugh Leask

Deutsche Bank’s profits rise 2% in the third quarter
49 Min Ago

German lender Deutsche Bank reported a 2% year-on-year increase in third-quarter net profit, reaching 1.9 billion euros ($2.11 billion), while pre-tax profits climbed 8% to 2.6 billion euros. The bank experienced a 50 billion euro increase in assets under management across its private bank and asset management units, driven by record net inflows of 47 billion euros. CEO Christian Sewing highlighted growth in revenue, investment inflows, loans, and deposits, particularly strong momentum in Germany, with the bank's return on tangible equity hitting 11.5% for the first nine months of 2026.

— Hugh Leask

UBS pre-tax profits jump 27% to $3.59 billion in the third quarter
1 Hour Ago

Swiss banking and asset management giant UBS announced a 27% year-on-year rise in pre-tax profit for the third quarter, reaching nearly $3.6 billion, largely in line with consensus forecasts. Net profits for the quarter stood at $2.7 billion. The bank also reported strong net inflows into its global wealth management business.

Read more about UBS earnings here.

Meta- and Google-backed Jio Platforms’ shares soar 21% on trading debut after record IPO
2 Hours Ago

Shares of Jio Platforms, India's largest telecom and digital services player, surged 21.4% on their Wednesday trading debut. This follows a record-breaking initial public offering that raised 302 billion rupees ($3.2 billion) by offering 270 million shares at 1,119 rupees apiece, making it the country's largest-ever IPO. The public issue was oversubscribed more than 22 times, with significant demand from institutional investors (70.55 times) and retail investors (2.72 times).

—Priyanka Salve

Labubu-maker Pop Mart’s shares extend declines as third-quarter sales plunge
4 Hours Ago

Chinese toymaker Pop Mart, renowned for its Labubu dolls, saw its shares extend their year-to-date decline beyond 30% after reporting a sharp drop in third-quarter revenue. Shares were down almost 2% after an initial 6% fall, continuing a trend of declines in nine out of the past twelve sessions. The company reported a 45% to 50% year-on-year decrease in third-quarter revenue.

—Jenny Lee

Korea Exchange briefly halts Kospi trading as stocks jump
6 Hours Ago

The Korea Exchange implemented a buy-side sidecar on the Kospi, temporarily suspending program trading, amidst a significant surge in South Korean stocks. A buy-side sidecar is activated when the Kospi 200 futures index increases by 5% or more for at least one minute, leading to a 5-minute trading halt. The Kospi was last observed up 4.8%.

—Justina Lee

SK Hynix shares jump as chipmaker's third-quarter profit sharply beats estimates
7 Hours Ago

South Korean chipmaker SK Hynix reported a record-high quarterly profit, significantly exceeding analyst estimates. The company also announced plans for over $25 billion in dividends and buybacks, including about 100 trillion won to shareholders (30 trillion won in cash dividends and 60 trillion won in share buybacks and cancellations), boosting its shares by over 3%. SK Hynix posted record quarterly revenue, surpassing 100 trillion won for the first time, and approved a third-quarter dividend of 14 trillion won, partly funded by gains from its Kioxia investment. The company will also buy back 20 trillion won in shares, with half to be cancelled this year.

—Jenny Lee

Japan's Nikkei adds 0.7%, South Korea's Kospi advances over 2%
7 Hours Ago

Early Wednesday trading saw Asia-Pacific markets trading higher. Japan's Nikkei 225 added over 0.74%, with the Topix rising 0.32%. The Kospi gained 2.06% at open, and the small-cap Kosdaq rose 1.78%. Australia's benchmark S&P/ASX 200 was 0.84% higher.

—Justina Lee

Asia-Pacific markets set to open higher, tracking Wall Street gains
8 Hours Ago

Asia-Pacific markets were poised for a higher open Wednesday, mirroring positive momentum from U.S. stocks. This was driven by renewed optimism surrounding AI stocks and a favorable slide in crude oil prices. Japan's Nikkei 225 was expected to gain, with its Chicago and Osaka futures contracts trading higher than its previous close. Hong Kong's Hang Seng index futures also showed an upward trend. Australia's S&P/ASX 200 was already up 0.27% in early trade. Crude oil prices fell for the second consecutive session on Tuesday, attributed to renewed diplomatic efforts to de-escalate Middle East tensions.

—Justina Lee

Oracle rallies Tuesday on expanded collaboration with ChatGPT
9 Hours Ago

Oracle shares rallied 3.6% on Tuesday, spurred by its initiatives to integrate OpenAI's ChatGPT and Codex into its applications and expand its cloud chip offerings. Oracle Cloud Infrastructure will now support Google TPUs, OpenAI's Jalapeño chip, and Cerebras hardware, providing more silicon options for customers. Oracle President of Cloud Infrastructure Mahesh Thiagarajan stated that integrating ChatGPT allows for broader application development and deployment. OpenAI CEO Sam Altman is also scheduled to deliver a keynote at Oracle AI World alongside Oracle co-CEO Clay Magouyrk. Despite this positive news, Oracle shares have seen significant declines of 33% year-to-date and about 54% over the past year.

— Scott Schnipper, Seema Mody, Nick Wells

Robinhood, NXP Semiconductor and Seagate among the names making moves after hours
9 Hours Ago

Several companies saw significant after-hours movements:

• Robinhood: The online trading platform declined almost 5% after its third-quarter revenue met expectations, but the company lowered the high-end of its full-year 2026 adjusted operating expenses forecast. Average revenue per user for the quarter was $200, slightly below the StreetAccount consensus of $201.09.
• Seagate Technology: Shares fell 6% despite the data storage company reporting an earnings and revenue beat for its fiscal first quarter, according to LSEG, and providing better-than-expected guidance for the current quarter.
• NXP Semiconductors: The semiconductor manufacturer tumbled 9% as its fourth-quarter revenue projections of $3.85 billion (plus or minus $100 million) were roughly in line with the LSEG consensus of $3.86 billion. Adjusted operating income was projected between $1.374 billion and $1.442 billion, near the FactSet consensus of $1.44 billion.

Read the full list here.

— Davis Giangiulio and Darla Mercado

U.S. equity futures open flat Tuesday evening
9 Hours Ago

Futures linked to the Dow Jones Industrial Average rose by a mere 5 points (0.01%). S&P 500 futures and Nasdaq-100 futures also hovered near the flat mark as trading commenced Tuesday evening.

— Davis Giangiulio