Stock Market Today: S&P 500 and Nasdaq Close Higher as Chips Rally, Fed Holds Rates Steady

New York, Oct. 28, 2026 — U.S. stocks closed higher on Wednesday, with the S&P 500 and Nasdaq Composite advancing as a rally in semiconductor shares, fueled by blowout results from South Korea’s SK Hynix, outweighed weakness in megacaps and investor caution ahead of the Federal Reserve’s rate decision.

The S&P 500 gained approximately 0.2% to close near 7,740, while the Nasdaq Composite rose about 0.1% to roughly 26,490 . The Dow Jones Industrial Average added roughly 150 points, or 0.3%, to around 52,530 .

Why Did the Stock Market Rise Today?

1. Chip stocks surged on SK Hynix’s explosive earnings. South Korean memory chipmaker SK Hynix reported a more than sevenfold jump in quarterly operating profit, driven by relentless AI infrastructure demand. The results ignited a rally across the semiconductor complex. Micron Technology jumped 4.8% to its highest level in over two weeks, while SK Hynix’s U.S.-listed shares soared 12.2% . The Philadelphia Semiconductor Index rose 0.9%, on track for its fourth consecutive session of gains .

2. Alphabet gained on OpenAI chip report. Alphabet advanced 1% following a media report that OpenAI plans to purchase Google’s AI chips, adding optimism to the AI trade .

3. Vertiv surged on raised guidance. Digital infrastructure provider Vertiv jumped 13.2% after raising its full-year profit and revenue forecasts and topping third-quarter expectations .

Which Stocks Weighed on the Market?

Despite the chip-led gains, megacap weakness capped the upside. Tesla dipped 1.3% after surging more than 9% over the prior two sessions, while Apple eased 0.5% and SpaceX dropped 2.4% .

Boston Scientific shed 6.6% after the medical device maker trimmed its annual profit forecast . Robinhood fell after missing Wall Street’s third-quarter profit estimates, and Visa dipped following its quarterly results .

What Did the Federal Reserve Decide?

The Federal Reserve held its benchmark interest rate steady at 3.75% to 4.00% on Wednesday, widely expected after September’s quarter-point hike . The decision was approved by a 10-2 vote, with Fed Governors Lisa Cook and Beth Hammack dissenting in favor of a 25-basis-point increase .

The FOMC statement noted that “inflation remains elevated” and that “domestic spending has been resilient,” with productivity growth strong and capital investment robust . Fed Chair Kevin Warsh was scheduled to hold a press conference following the decision.

According to LSEG data, traders still price at least three 25-basis-point increases by late 2027, as persistently high inflation tied to Middle East energy costs bolsters the case for tighter policy .

What Are Treasury Yields Saying?

The 10-year Treasury yield rose about 3 basis points to 5.02% following the Fed’s decision, while the dollar strengthened slightly against a basket of currencies . Yields had edged higher earlier in the session as investors positioned for the policy announcement.

What’s Next for Investors?

Attention now shifts to Big Tech earnings after the closing bell, with Microsoft and Alphabet both scheduled to report. Investors will scrutinize their cloud growth and capital expenditure plans for evidence that massive AI investments are translating into returns .

“The number one worry for investors is not AI valuations anymore, but it’s the financing through debt as debt goes through the roof in the U.S.,” said Nadia El Bilassy, senior market analyst at Equiti Group .

Also on deck: September PCE inflation data on Thursday, the Fed’s preferred price gauge, which could test expectations for future rate hikes. Third-quarter GDP, expected to show 3.2% growth, is also due this week .

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Key Takeaways (Quick Summary)

• S&P 500 rose ~0.2% to near 7,740; Nasdaq added ~0.1%; Dow gained ~0.3% to around 52,530
• SK Hynix’s sevenfold profit surge ignited chip rally: Micron +4.8%, SK Hynix US shares +12.2%
• Alphabet gained 1% on report OpenAI plans to buy Google AI chips
• Vertiv jumped 13.2% on raised guidance; Boston Scientific fell 6.6% on trimmed forecast
• Fed held rates at 3.75%-4.00% in a 10-2 vote, with two dissenters favoring a hike
• 10-year Treasury yield rose to ~5.02% after the Fed decision
• Microsoft and Alphabet report after the bell, a critical test for the AI trade
• September PCE inflation data due Thursday could shape rate expectations