Dow, S&P 500, Nasdaq Futures Mixed Ahead Of Key Tech Results, Fed Rate Decision: SKHY, HOOD, BA, ENPH In Focus

On Tuesday, markets edged higher after Broadcom announced that a group of banks would provide $63 billion in financing to purchase its chips and networking solutions for Anthropic.

• Media reports indicate the banks plan to raise about $21 billion in high-grade bonds early next year to finance Broadcom’s deal.
• Markets will now turn their attention to the Federal Reserve’s policy meeting, which will announce its benchmark rate decision on Wednesday.
• According to data from the CME FedWatch tool, the probability of the central bank holding rates steady at 3.75%–4.00% is now at 90.6%.

U.S. stock futures were mixed overnight late Tuesday as Wall Street gears up for key technology results and the much-anticipated Federal Reserve policy decision.  

As of 10:06 p.m. EDT, Dow futures fell 0.30%, and S&P 500 futures were down 0.06%. Nasdaq-100 futures climbed 0.18%. 

On Tuesday, U.S. benchmark indexes closed higher. The Nasdaq Composite led the climb, adding more than 300 points to close 1.18% higher. The Dow Jones Industrial Average gained 0.03%, while the S&P 500 climbed 0.60%. 

Index	Move	Close
Dow Jones Industrial Average	0.03%	52,377.57
S&P 500	0.60%	7,722.60
Nasdaq Composite	1.18%	26,477.81

Key US Market Drivers

Results from major technology companies are on tap this week as Wall Street will look to  Alphabet Inc. (GOOGL), Microsoft Corporation (MSFT), and Amazon.com Inc. (AMZN) for cues on the artificial intelligence segment and capital expenditure spending. 

On Tuesday, markets edged higher after Broadcom Inc. (AVGO) announced that a group of banks would provide $63 billion in financing to purchase its chips and networking solutions for Anthropic. AVGO stock rose 4%, while other chip stocks, including Advanced Micro Devices Inc. (AMD) and Micron Technology (MU), also gained in sympathy. 

Media reports indicate that the banks are planning to raise about $21 billion in high-grade bonds early next year to finance Broadcom’s deal.

The iShares Semiconductor ETF (SOXX) closed up nearly 4%, while the Direxion Daily Semiconductor Bull 3X Shares (SOXL) surged more than 11% at close. The VanEck Semiconductor ETF (SMH) gained 3%. 

Markets will now turn their attention to the Federal Reserve’s policy meeting. Investors largely expect the central bank to hold rates steady as the midterm elections approach, although markets are pricing in a December hike amid rising inflation. 

According to data from the CME FedWatch tool, the probability of the central bank holding rates steady at 3.75%–4.00% is now at 90.6%. 

Jason Furman, Professor of Economics at the Harvard Kennedy School (HKS), noted in a post on X, “When the Fed doesn't move tomorrow the US will still have among the highest real policy rates of any of the major central banks in the world--a turnaround from the past when we tended to be on the low end. Due to a combo of our strong growth & inflationary pressures.”

Meanwhile, on the geopolitical front, Iran and the U.S. are no closer to reaching a peace deal as Tehran stands firm on its demands. 

“Iran’s priority is not simply to secure another ceasefire, but to end the war permanently and establish deterrence so that the cycle of military attacks by the US and Israel does not keep repeating itself,” Negar Mortazavi, editor and host of The Iran Podcast, told Al Jazeera.

Meanwhile, U.S. President Donald Trump said at an election rally in Lubbock, Texas, that the war with Iran can end whenever he wanted it to, adding that the war could end “very quick”, but that it needed to end “properly,” insisting that Iran could never have a nuclear weapon.

Reuters reported that the U.S. military has spent over $47 billion on the war, more than 25% above the Pentagon’s July estimate.

Although oil prices pulled back from six-month highs this week, they are still edging higher as no end to the war seems in sight. 

Brent crude futures were trading at $115.88 a barrel, up nearly 2%, while WTI crude futures traded 1.4% higher at $101.31 per barrel.

Trending Tickers To Watch 

SK Hynix Inc. (SKHY): The Korean chipmaker’s shares surged more than 6% overnight after posting record third-quarter (Q3) revenue and operating profit, led by stronger memory pricing and high-value products. 

Robinhood Markets Inc. (HOOD): The brokerage firm’s stock slipped more than 7% overnight after its Q3 revenue missed estimates, although retail traders remain firm about buying the dip. 

Boeing Co. (BA): The airplane maker’s stock plunged more than 10% at close after its Q3 loss per share was wider than Wall Street expected. 

Enphase Energy Inc. (ENPH): The energy company’s shares tumbled by nearly 15% in the overnight session late Tuesday after its Q3 results missed consensus estimates and its fourth quarter outlook disappointed markets. 

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were trading lower at the time of writing, while the Invesco QQQ Trust (QQQ) gained overnight. 

Meanwhile, the 10-year U.S. Treasury yield crossed the 5% threshold once again to trade at 5.022%, while the 30-year yield was 5.334%. 

The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.47% amid ‘neutral’ sentiment. 

Asian markets opened in green on Wednesday. South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks all ticked higher at the time of writing. 

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