US close: Stocks higher as traders digest Fed hold, contrasting tech results

(Sharecast News) - Major indices closed higher on Wednesday after the Federal Reserve opted to keep its benchmark interest rates steady.

At the close, the Dow Jones Industrial Average was up 0.19% at 52,475.10, while the S&P 500 advanced 0.28% to 7,743.98 and the Nasdaq Composite saw out the session 0.27% firmer at 26,549.85.

The Dow closed 97.53 points higher on Wednesday, extending modest gains recorded in the previous session.

Wednesday's primary focus was news that the Federal Reserve held interest rates steady, keeping the target range at 3.75% to 4% after lifting rates by a quarter point in September - its first hike since 2023. The decision was widely expected, with Fed funds futures implying a 93% probability that policymakers would leave rates unchanged.

Two Federal Open Market Committee members - governor Lisa Cook and Cleveland Fed president Beth Hammack - dissented, both favouring a 25 basis point rate increase. Fed chair Kevin Warsh also said the central bank will scale back the number of ratesetting meetings from 2027, with one of the eight annual gatherings to be dedicated solely to broader monetarypolicy strategy, and the remainder focused on setting interest rates.

In the corporate space, Google parent company Alphabet tumbled more than 10% in extended trading after posting its first top and bottomline miss in nearly four years, with a sharp drop in free cash flow unsettling investors focused on the AI trade. Thirdquarter adjusted earnings came in at $2.67 a share against $3.02 expected, while revenue of $127.58bn also fell short of forecasts. Net income slid to $26.17bn, down from $34.98bn a year earlier. The biggest concern was a $9.07bn negative free cash flow figure, far worse than the $2.70bn deficit analysts had pencilled in, overshadowing otherwise solid 25% revenue growth.

On the other hand, Microsoft jumped 4% in after hours action after delivering another strong quarterly performance, powered by 48% growth in its Azure cloud business. Adjusted earnings of $4.89 per share beat expectations, while revenues rose 19% yearonyear to $92.28bn, ahead of consensus. Azure has become the group's largest business, supported by heavy investment in datacentre infrastructure to meet AI demand. Capital expenditure and finance leases totalled $45.2bn, up around 30% on last year but below analyst estimates, with Microsoft noting timing differences in payments and a lower mix of finance leases. It also highlighted continued positive free cash flow, setting it apart from other hyperscalers.

On the macro front, US mortgage applications increased 3.4% in the week ended 23 October, according to the Mortgage Bankers Association of America, snapping a sevenweek slide that had taken activity to its lowest level since January 2025. Applications to purchase a home slid 3.8% on the week, while refinancing activity, which is typically more sensitive to week-to-week rate changes, increased by 2.7%. The increase came as borrowing costs remained near a threeyear high, with rates still more than one percentage point higher year-on-year even as the average 30-year fixed mortgage rate fell to 7.37%, marking a second consecutive weekly decline.

Elsewhere, the US goods trade deficit widened unexpectedly in September as rising imports continued to weigh on economic growth, according to preliminary figures from the Census Bureau, with the shortfall increasing 2.1% to $134.9bn, compared with expectations for a $130.2bn deficit, marking another month in which trade was likely to have subtracted from GDP amid strong demand for imported capital goods linked to the ongoing AI investment boom. Goods imports rose $8.1bn to $344.1bn, while exports climbed $5.3bn to $209.2bn.

On another note, wholesale inventories rose 0.6% in September to $941.5bn, advance figures from the Census Bureau showed, following a 0.5% increase in August and topping forecasts for a similar 0.5% gain. If confirmed, it would mark an eighth straight monthly rise, pointing to continued stockbuilding across the wholesale sector. Inventories were higher across both major categories, with non-durables up 0.9% and durable goods rising 0.4%. On an annualised basis, wholesale inventories were estimated to have grown 7.4%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $95.53 2.11%

Amgen Inc. (AMGN) $451.83 1.78%

American Express Co. (AXP) $317.94 1.61%

Goldman Sachs Group Inc. (GS) $925.17 1.47%

International Business Machines Corporation (CDI) (IBM) $253.22 1.19%

JP Morgan Chase & Co. (JPM) $339.30 1.05%

Dow Chemical Co. (DOW) $34.13 1.04%

Johnson & Johnson (JNJ) $271.04 0.86%

3M Co. (MMM) $172.80 0.71%

Coca-Cola Co. (KO) $91.73 0.60%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $43.18 -1.71%

Nike Inc. (NKE) $37.15 -1.09%

Walt Disney Co. (DIS) $109.04 -1.08%

Unitedhealth Group Inc. (UNH) $407.10 -0.80%

Travelers Company Inc. (TRV) $394.01 -0.76%

Merck & Co. Inc. (MRK) $140.93 -0.63%

Boeing Co. (BA) $167.14 -0.62%

Procter & Gamble Co. (PG) $158.26 -0.61%

Cisco Systems Inc. (CSCO) $110.29 -0.58%

Visa Inc. (V) $400.60 -0.31%

S&P 500 - Risers

Oracle Corp. (ORCL) $144.54 10.73%

Laboratory Corporation of America Holdings (LH) $360.25 8.78%

Applied Materials Inc. (AMAT) $416.00 6.66%

Micron Technology Inc. (MU) $983.23 6.49%

Lam Research Corp. (LRCX) $253.82 6.21%

KLA-Tencor Corp. (KLAC) $158.77 5.63%

Illumina Inc. (ILMN) $288.79 5.47%

Helmerich & Payne Inc. (HP) $41.81 5.31%

Western Digital Corp. (WDC) $396.42 4.89%

Quanta Services Inc. (PWR) $606.89 4.85%

S&P 500 - Fallers

F5 Inc. (FFIV) $365.53 -20.76%

CH Robinson Worldwide Inc (CHRW) $127.60 -9.33%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

National Oilwell Varco Inc. (NOV) $19.27 -6.23%

Boston Scientific Corp. (BSX) $42.43 -5.84%

Fortinet Inc. (FTNT) $174.08 -5.27%

FMC Corp. (FMC) $4.47 -5.10%

Xylem Inc (XYL) $88.23 -4.99%

Cintas Corp. (CTAS) $212.81 -4.63%

Essex Prty Trust Inc. (ESS) $261.42 -4.62%

Nasdaq 100 - Risers

Applied Materials Inc. (AMAT) $416.00 6.66%

Micron Technology Inc. (MU) $983.23 6.49%

Lam Research Corp. (LRCX) $253.82 6.21%

KLA-Tencor Corp. (KLAC) $158.77 5.63%

Illumina Inc. (ILMN) $288.79 5.47%

Western Digital Corp. (WDC) $396.42 4.89%

Seagate Technology Plc (STX) $697.97 4.03%

Cadence Design Systems Inc. (CDNS) $342.46 3.87%

DENTSPLY Sirona Inc. (XRAY) $9.44 3.51%

Skyworks Solutions Inc. (SWKS) $87.23 3.39%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Cintas Corp. (CTAS) $212.81 -4.63%

Paychex Inc. (PAYX) $108.21 -4.32%

Automatic Data Processing Inc. (ADP) $285.37 -3.70%

Take-Two Interactive Software Inc. (TTWO) $195.29 -3.65%

Wynn Resorts Ltd. (WYNN) $71.38 -3.37%

Netflix Inc. (NFLX) $61.99 -2.82%

Booking Holdings Inc. (BKNG) $147.94 -2.62%

Mercadolibre Inc. (MELI) $1,673.09 -2.62%

Check Point Software Technologies Ltd. (CHKP) $155.22 -2.36%