S&P 500, Nasdaq Jump On Chipmaker Strength As Investors Eye October Fed Decision — ORCL, HOOD, JBLU, RIVN, SMCI In Focus

The Federal Reserve’s October monetary policy meeting announcement is due on Wednesday.

• The S&P 500 ended Tuesday 0.6% higher, the Nasdaq 100 rose 1.3%, and the Dow Jones Industrial Average ended flat.
•  JetBlue stock soared 19% after its CEO highlighted the carrier had enough liquidity. 
• Boeing Co. sank 11% after cutting its delivery target.

U.S. stock indices ended higher on Tuesday for the second consecutive session, driven by strong gains in chipmaker stocks as investors await the Federal Reserve’s interest rate decision due on Wednesday. 

 The S&P 500 ended Tuesday 0.6% higher, the Nasdaq 100 rose 1.3%, and the Dow Jones Industrial Average ended flat. The Russell 2000, which tracks small-cap stocks, added 1.2%.

Meanwhile, futures tied to the Dow Jones Industrial Average rose 5 points, or 0.01%. S&P 500 futures and Nasdaq-100 futures were also hovering near the flat mark at the time of writing.

The SPDR S&P 500 ETF (SPY) gained 0.6%, and the SPDR Dow Jones Industrial Average ETF (DIA) rose 0.1%. Meanwhile, the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) ended 1.3% higher on Tuesday.  

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF jumped about 3% each on Tuesday as gains in AMD, Micron Tech (MU) and Nvidia (NVDA). The broader Vanguard Information Technology ETF (VGT) rose 1.6%.

Retail sentiment on Stocktwits for SPY, DIA and QQQ was ‘bearish’ with ‘high’ message volumes.

US Market Drivers

Index	Move	Close
Dow Jones Industrial Average	Flat	52,377.57
S&P 500	0.6%	7,722.60
Nasdaq 100	1.3%	29,651.44

These recent advances build on momentum from the previous trading session, led by Anthropic’s submission of documentation to launch an initial public offering on the Nasdaq. This would be the second high-profile listing this year following SpaceX. 

“The period of a rising market lifting all stocks has started to shift,” he said. “Future expectations are more focused upon execution risk and how much future success is already embedded in the current stock price.” Chris Brigati at SWBC told Bloomberg.

Meanwhile, central bank officials are expected to leave interest rates unchanged on Wednesday, choosing to wait before deciding on any future policy tightening.

Federal Reserve Chair Kevin Warsh, having avoided specific forward guidance, traders would look for particular cues for the discourse of future rate hikes, with one fully priced in for December.

Key Trending Stocks

Robinhood Markets (HOOD) share price dropped after-hours on Tuesday after the stock broking firm missed revenue expectations even as income from trading activities hit a record.  

Oracle Corp. (ORCL) share price gained about 4% on Tuesday after announcing a host of agreements around its Oracle Cloud Infrastructure with Google, OpenAI and Cerebras.    

Shares of Rivian Automotive (RIVN) rose over 3% on Tuesday after a commercial van wrapped in Walmart+ livery was spotted on a car hauler in Indiana, raising hopes of a potential new fleet customer, a day after the stock hit a fresh 52-week low. 

JetBlue Airways (JBLU) is actively pushing back against market skepticism regarding its financial stability, with Chief Executive Officer Joanna Geraghty stating to Reuters that the carrier is neither holding talks with creditors nor evaluating any form of debt restructuring. 

Argentum AI, an independent cloud computing provider backed by Super Micro Computer (SMCI), is engaged in advanced discussions with a major private credit institution to secure a $5 billion financing package.  

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