Fed Holds Rates Steady as Four Major US Indexes Close Higher
The US Federal Reserve during US stocks Wednesday session as expected held rates steady at 3.75% to 4% without a hike, and all four major US indexes closed higher on Wednesday. The S&P 500 rose 0.28% to close at 7743.98 points; the Nasdaq Composite climbed 0.27% to 26549.85 points; the Dow Jones Industrial Average gained 97.53 points or 0.19% to close at 52475.10 points; the Philadelphia Semiconductor Index jumped 1.75% to close at 11684 points. TSMC ADR rose 0.62% to close at 439.51 dollars, its 4th consecutive trading day of closing gains. Taiwan index futures after-hours closed down 128 points but remained above 47000 points, as investors digested the latest Fed rate decision and awaited earnings from large-cap technology stocks.
September 1-Code Hike, Year-End Hike Not Ruled Out
Fed officials at the September meeting had raised rates by 0.25 percentage points, the first hike by the Fed since 2023. According to the CME FedWatch tool, ahead of Wednesday policy meeting, federal funds futures reflected a nearly 93% probability of holding current rates steady. Chair Warsh (Kevin Warsh) said at the press conference after the rate decision that despite pausing hikes, the central bank continues to prioritize price stability and noted the overall job market situation is quite positive. Franklin Templeton Institute Chief Investment Strategist Jeff Schulze said none of the information released today rules out the possibility of another 25-basis-point hike before year-end, and the key question for markets is the pace of tightening, while the Federal Open Market Committee appears to view a cautious, gradual pace to gradually unwind last year's rate cuts as appropriate, a pace that historically tends to be more favorable for risk assets.
Oracle Guidance Sparks Over 10% Surge, Semiconductors Rise Together
Software company Oracle (Oracle) surged 10.73% after releasing its financial forecast. The company forecast 2030 fiscal year revenue of 2250 billion dollars, implying an annual growth rate of 35%, and said additional fundraising from 2027 to 2030 fiscal years would be limited to 20 billion dollars. Chipmaker-related stocks also moved higher, mainly boosted by SK Hynix (SK Hynix) reporting record quarterly profit, with SK Hynix ADR surging 13.3% on Wednesday close. Micron Technology shares soared 5.86%, Arm Holdings rose 4.1%, Marvell Technology rose 3.32%, and AMD rose 3.24%.
Focus on AI Trades and Magnificent Seven Earnings
After the US market close, investors will continue to focus on artificial intelligence-related trading moves, as Magnificent Seven members Alphabet and Microsoft are set to report their latest quarterly earnings. In recent weeks technology stocks have performed weakly, especially those closely tied to AI infrastructure investment, as markets question how AI-related investments are being financed, putting such technology stocks in focus.