Fed Keeps Rates Unchanged, U.S. Stocks Rise for Third Straight Day
The Federal Open Market Committee voted 10 to 2 to keep the federal funds rate target range at 3.75% to 4%, in line with market expectations. According to the CME FedWatch Tool, the pre-meeting probability of no change was nearly 93%. Chair Walsh reiterated determination to fight inflation, describing employment conditions as quite positive, stressing the Fed's focus on price stability, and noting officials have made clear they stand ready to act as conditions warrant, but he did not explicitly signal whether rates will be raised again in December. He also announced a gradual adjustment to the meeting schedule, planning rate-decision votes at seven of eight meetings next year, bringing relief to markets.
SOX Jumps 1.75% as Oracle Soars Over 10%
All four major U.S. indexes closed higher on Wednesday, with the Dow Jones Industrial Average up 97.53 points, or 0.19%, at 52,475.10. The Nasdaq rose 72.04 points, or 0.27%, to 26,549.85. The S&P 500 gained 21.38 points, or 0.28%, to 7743.98. The Philadelphia Semiconductor Index surged 201.49 points, or 1.75%, to 11,684, the strongest performer. Oracle jumped 10.73% to $144.54 on its long-term revenue outlook, forecasting revenue of 2250 billion dollars in fiscal 2030, lifting confidence in technology shares. Large tech stocks were mixed, with Alphabet up 1.34% and Amazon up 0.59%, while Apple fell 0.94%, Meta fell 1.24%, and Microsoft slipped 0.06%.
Taiwan Stocks Jump 939 Points, Night Futures Fall 128 Points
Taiwan stocks rebounded strongly, with the weighted index surging 939.35 points, or 2.04%, to close at 47,035.58 on turnover of NT$722.14 billion. The three major institutional investors bought a net NT$32.44 billion, including NT$15.96 billion by foreign investors, NT$14.32 billion by investment trusts, and NT$2.17 billion by dealers, while government funds bought a net NT$890 million. However, Taiex night futures fell 128 points, and TSMC futures slipped NT$1 after hours, contrasting with gains in U.S. stocks. Margin buying rose NT$8.913 billion yesterday, showing active retail buying. Foreign investors' net open interest in futures remained net short at 84,917 contracts, down 1,126 contracts, with hedging positions still high, so the market must stay cautious.
Memory Stocks Lead, Focus on Defending 47,000
Memory stocks took center stage, with Micron up 5.86%, Western Digital up 4.08%, SanDisk up 7.66%, Seagate up 4.51%, and SK Hynix ADR soaring 13.30%. SK Hynix rallied on a sixth straight quarter of record revenue and operating profit, plus strong demand for DRAM and high-bandwidth memory. Other semiconductor stocks were mixed, with AMD up 3.24%, Broadcom up 2.77%, and Applied Materials up 5.07%, while Nvidia fell 1.17% and Qualcomm slipped 0.65%. Lun Yuan Investment Advisor Wang Chun-sheng said Taiwan stocks rebounded strongly after testing the quarterly moving average, with today's indicators in semiconductor supply chains, memory, low-orbit satellites, robotics, PCB, IC design, and plastics, advising investors to weed out weak stocks, hold strong ones, and buy quality stocks on dips in batches, while watching whether the index can hold above the 47,000 level.