U.S. stocks closed modestly higher on Wednesday, with all three major indexes finishing in positive territory after the Federal Reserve left interest rates unchanged. The central bank kept its benchmark rate at 3.75% to 4% in a 10-2 vote, with two officials preferring a quarter-point increase instead. Trading was calm around the decision, and the bigger action came from individual stocks reacting to earnings and a takeover proposal.
What Moved Markets
The Dow Jones Industrial Average rose 102.05 points, or 0.19%, to close at 52,479.62. The S&P 500 gained 21.38 points, or 0.28%, to finish at 7,743.98. The Nasdaq Composite added 72.04 points, or 0.27%, to end the session at 26,549.85.
The Fed’s statement described the economy as expanding at a strong pace while noting that inflation remains elevated. The two dissenting votes, from Lisa Cook and Beth Hammack, were a reminder that some policymakers see risks of prices staying too hot. Even so, stocks barely reacted, since a pause had been widely expected. Chair Kevin Warsh also said one of the Fed’s eight meetings in 2027 will be devoted to longer-term strategy, with no rate vote. Chip and AI-related shares got a lift earlier in the day after South Korea’s SK hynix reported record quarterly results and said it expects memory demand to outpace supply through 2030.
Notable Movers
Vertiv (VRT) jumped 16.6% after the data center power and cooling equipment maker reported third-quarter sales up 61% and raised its full-year sales forecast by $650 million. Orders, excluding acquisitions, more than doubled from a year earlier.
Enphase Energy (ENPH) fell 16.0%. The solar equipment maker forecast fourth-quarter revenue of $225 million to $255 million, below the $293.3 million it reported for the third quarter, and cited soft home solar demand, higher interest rates and the expiration of a federal tax credit.
Wendy’s (WEN) rose about 15% after confirming it received a non-binding $7.35 per share cash proposal from Nelson Peltz’s Trian and its partners. A committee of independent directors will evaluate the offer, and there is no guarantee a deal will happen.
F5 (FFIV) dropped 20.4% after forecasting revenue growth of 8% to 9% for its new fiscal year, a slowdown from 11% in the year just ended. Logitech (LOGI) slid 12.1% after warning that a supplier plant shutdown would cost it $70 million to $80 million in the holiday quarter. On the upside, Genmab (GMAB) surged 28.3% after a late-stage head and neck cancer trial showed its drug cut the risk of death by 50%.
Looking Ahead
After the closing bell, investors turned to a heavy slate of earnings, with Microsoft, ServiceNow, Chipotle, Ford, eBay, KLA and Carvana all reporting. Microsoft’s results will be watched closely for clues on AI demand and spending plans. On Thursday at 8:30 a.m. ET, the government releases third-quarter GDP along with September personal income and spending data, which includes a closely followed inflation reading. The Fed’s next meeting is December 8 and 9. As always, one day’s moves are only a snapshot, and this summary is for information only, not investment advice.