Key takeaways
- Nasdaq and S&P 500 rise as Dow slips
- SK Hynix earnings lift Micron and semiconductor shares
- Fed decision and Big Tech earnings loom today
US stocks opened mixed on Wednesday, October 28, as a rebound in artificial intelligence chipmakers lifted the Nasdaq and S&P 500, while the Dow Jones Industrial Average slipped ahead of the Federal Reserve's interest-rate decision.
The Nasdaq Composite gained 0.24% to 26,541.61 at the opening bell, while the S&P 500 rose 0.17% to 7,735.56. The Dow declined 0.08%, or approximately 42 points, to 52,335.43, according to Reuters.
The mixed start follows two consecutive sessions of gains for the technology-heavy Nasdaq, with investors returning to semiconductor stocks despite persistent concerns about AI infrastructure spending and borrowing costs.
Micron and Nvidia Gain After SK Hynix's 632% Profit Surge
Memory-chip companies led the early enthusiasm after South Korea's SK Hynix reported an extraordinary increase in quarterly earnings.
Operating profit surged 632% year over year to approximately 83.3 trillion won, while revenue climbed 328% to 104.6 trillion won. The company also unveiled a shareholder-return program worth approximately $75 billion.
The results, detailed in our SK Hynix coverage, reinforced expectations that demand for high-bandwidth memory remains strong.
Micron Technology rose approximately 4% in premarket trading, while Western Digital gained 4.5% and Nvidia advanced 0.8%. AMD added 1.5%, and Marvell Technology rose 1.7%, according to Reuters.
Seagate Technology moved against the broader trend, falling 3.7% before the opening bell following its quarterly results.
The divergence reflects a broader question surrounding the AI industry: semiconductor suppliers can generate substantial profits while companies financing the underlying infrastructure face growing pressure.
Those concerns recently intensified when CoreWeave bond yields approached 15%, raising questions about debt-funded data center expansion.
Microsoft and Google Face $600 Billion AI Spending Test
Wall Street is also preparing for major technology earnings after Wednesday's closing bell.
Microsoft and Alphabet will report quarterly results, giving investors a closer look at cloud computing growth, AI infrastructure expenses and whether enormous investment commitments are generating sufficient returns.
The companies, alongside Amazon, could collectively spend nearly $600 billion on AI infrastructure during 2026.
The AI spending analysis highlighted how increasing capital expenditure could pressure cash flow even as demand for computing capacity accelerates.
The upcoming reports may determine whether Wednesday's semiconductor recovery develops into a broader technology rally.
Fed Rate Decision Could Reverse Wall Street's Early Gains
The Federal Reserve is scheduled to announce its latest policy decision at 2 p.m. Eastern Time, followed by a press conference at 2:30 p.m.
Markets overwhelmingly expect policymakers to maintain the benchmark interest-rate range at 3.75%–4.00%.
A Reuters survey previously found that 94 of 100 economists expected an October pause, while all respondents anticipated another increase in December.
However, inflation remains elevated, and the recent Treasury yield surge has complicated the outlook for stocks.
The combination of expensive borrowing and enormous AI infrastructure investment has already affected market sentiment, as reflected in Monday's stock market rebound.
