The Fed held its benchmark rate at 3.75%-4%, but the decision was not unanimous: the vote was 10–2, with Lisa Cook and Beth Hammack voting for a quarter-point rate increase and giving no explanation. After Chair Kevin Warsh's press conference, the S&P 500 gave up its brief early gain, while the VanEck Semiconductor ETF rose 1.7% against the index's 0.3%. AI infrastructure stocks are highly sensitive to rates because many are borrowing tens of billions of dollars to build data centers; CoreWeave (CRWV) gained 5.6% in the regular session. Warsh called the decision a 'hawkish skip', implying possible future hikes, and CME FedWatch shows a 78% chance of a rate hike at the December meeting.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Fedinterest ratesKevin Warshartificial intelligencedata centersNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/28/2026 | 102.14 |
| Change that session | -0.22% |
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/28/2026 | 215.39 |
| Change that session | -1.17% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Not going to prejudge: Fed Chair keeps rate outlook open; calls AI positive supply shock
Fed Chair Kevin Warsh declined to signal the central bank's next interest-rate move at the IMF and World Bank annual meetings, saying he would not 'prejudge' policy decisions. He described AI as a 'positive supply shock' for the economy over the medium term and said the US is seeing a massive investment surge, which challenges the theory of secular stagnation. Major brokerages reportedly expect a possible rate hike in December, while markets broadly anticipate no change at the October 27-28 meeting. Warsh said AI is hitting demand before it hits supply, so central bankers and businesses must recognise it as a shock. The Fed will also hold the first field hearing of a task force on November 16.
- Nasdaq Buckles on Fear This Boom Is an AI Bubble: Stock Market Today
Major US indexes fell again on Friday as semiconductor stocks sold off for a ninth straight session, with CoreWeave down 11.9% and the VanEck Semiconductor ETF down 3.4%. Fed Chair Kevin Warsh gave little guidance on interest rates at the IMF and World Bank meetings in Bangkok but described AI as probably the most consequential change to the US and global economy in his lifetime. Traders' odds of the Fed holding rates unchanged at its late-October meeting rose to 85.1% from 72.3% on Thursday, according to CME FedWatch. Netflix fell 2.9% ahead of its third-quarter report on Tuesday, after announcing its biggest layoffs since 2022 and a new chief content officer, and is down more than 15% year to date. Tesla shares slipped 2.1% after it unveiled its Roadster, which can thrust itself into the air.
- Fed Warsh says AI most consequential change to economy in his lifetime
Warsh said at the IMF-World Bank Annual Meetings in Bangkok that AI is probably the most consequential change to the US and global economy in his lifetime. He said the AI investment boom would push prices up in the short term through demand effects, but expected a positive supply-side shock in the long run and large benefits to the global and US economies over time. He said the Fed expects to use AI to analyse data better in conducting monetary policy, and that countries that put the technology to good use would become more productive. He cautioned that the path ahead would be very bumpy, given uncertainty about how the technology will be understood and how its market structure will evolve.
- AI debt trouble could help Fed's Warsh get his way with fewer rate hikes
- Big Tech Earnings, Fed Decision and Other Key Things to Watch this Week
Markets face a pivotal week as the Federal Reserve announces its interest rate decision on Wednesday at 2:00pm. Fed Chair Kevin Warsh will hold a press conference at 2:30pm. Heavy earnings reports from Alphabet, Microsoft and Amazon will test whether AI spending is paying off.
- Business - HITS FM
Fed Chair Kevin Warsh warned that a surge in AI spending could deliver a 'shock' to the U.S. economy, hitting demand before supply and putting upward pressure on prices, and pledged to contain price increases. He remained optimistic that AI would ultimately boost productivity and wealth, but said the path there would be 'very bumpy.' U.S. inflation rose 3.7% in September, more than a point above the Fed's 2% target, amid the oil shock from the Iran war. The Fed raised rates by a quarter of a percentage point in September, its first hike since 2023, and Warsh declined to preview its next meeting later this month. Per CME FedWatch, investors put the chance the Fed holds rates steady at about 86%, up from about 55% on Wednesday.
Related markets
Latest news
- Small-Cap Stocks Just Did Something They Haven't Done Since 2018. Is It Finally Time to Buy?
The Russell 2000 rose 2% in the week ended Oct. 23, snapping six straight weekly declines, its longest losing streak since 2018, while the S&P 500 and Nasdaq 100 both fell. The author links the divergence to the 10-year Treasury yield, which has fallen from a 5.36% peak in early October to below 5% as AI spending concerns drove a flight to safety, and notes that small-caps have been about twice as sensitive to Treasury yields as large-caps, according to State Street. Small-cap earnings are expected to grow more than 20% year over year, while the Russell 2000 trades at around 18 times earnings. The risk is that futures still price in two or three more quarter-point rate hikes by mid-2027, and a reversal in long-term yields could quickly fade any rebound. The iShares Russell 2000 ETF (IWM) is about 9% below its August all-time high.
- Proposal to Cut Penalties for Businesses Dormant for Years
The Ministry of Finance is seeking comments on a draft government resolution to reduce penalties for late tax filings by taxpayers that have ceased operations without completing deregistration (status 03) or are no longer at their registered address (status 06). Businesses that submit missing returns would face 30%, 50% or 70% of the current penalty, depending on when they finish, with the lowest rate applying through June 30, 2027. More than 753,000 taxpayers inactive for over 10 years could also have their tax codes terminated, provided they have no tax debt and are not under inspection or prosecution, after a 30-day public notice period. The ministry estimates about 1.6 million returns could be filed, reducing penalties by roughly VND 12,670 billion if completed by June 30, 2027. The policy excludes cases involving signs of tax evasion or tax fraud.
- Why Vertiv Stock Soared Today
Vertiv shares jumped 16.48% on Wednesday after its leadership offered bullish comments on the AI market. Third-quarter net sales rose 61% year over year to $4.3 billion, with the Americas, Asia-Pacific and EMEA segments up 75%, 50% and 23%, respectively, as its power and cooling products are increasingly used in AI data centers. Despite concerns that rising debt and higher interest rates could slow construction, CEO Giordano Albertazzi said the infrastructure build-out is accelerating. Adjusted earnings rose 78% to $2.21 per share, above Wall Street's projection of $1.82, while operating and free cash flow climbed 64% and 50% to $794 million and $652 million. Management now expects full-year adjusted earnings to rise 70% to $7.15 per share.
- China's tech darlings are losing their shine. Here's what's behind the sell-off
China's technology stocks are losing momentum as investors question whether the AI boom can generate profits high enough to justify rich valuations. The STAR 50 Index, which tracks 50 of the largest and most liquid companies on Shanghai's STAR Market, has fallen more than 40% from its July peak. The sell-off began as profit-taking after a strong rally that accelerated when DeepSeek emerged in early 2025, but has widened into doubts about whether earnings can support current prices. Battery giant CATL, down 37% year to date, illustrates the problem: its third-quarter revenue rose roughly 59% but net profit only about 15%, as competition, product mix and changes to taxes and rebates squeezed profitability. Analysts say a sustained rebound would require stabilizing earnings, clearer returns on AI spending and stronger domestic demand.
- Russia says there is “no room” for European countries at three-way Ukraine talks
Russian presidential aide Yury Ushakov said a three-way Russia–Ukraine–US negotiation will take place in Abu Dhabi, UAE, after 4 November, but no specific date has been set. He denied reports that talks could take place on 4 November, saying Moscow has not sent any such signals. Ushakov also said European countries will not be invited to the negotiating table and could only attend by buying tickets. US President Donald Trump said a meeting with Vladimir Putin and Volodymyr Zelensky would be arranged “very soon.” Separately, governor Dmitry Milyaev said a large-scale Ukrainian drone attack in the early hours of 28 October sent debris falling on Novomoskovsk, damaging an apartment block, private houses and infrastructure in a nearby industrial zone.
- Monster Beverage vs. On Holding: Which Is the Better Growth Stock?
The article compares Monster Beverage (MNST) and On Holding (ONON), two fast-growing consumer companies in different industries. Monster reported FY 2025 revenue of nearly $8.3 billion, up about 10.7%, and net income of close to $1.9 billion, a net margin of roughly 23%, but it relies heavily on Coca-Cola's distribution system and faces competition from Red Bull and PepsiCo. On Holding posted FY 2025 revenue of about $3.6 billion, up 30%, and net income of roughly $246 million, while heavy marketing and store expansion can weigh on margins. In the second quarter of 2026, Monster's sales rose 20.2% to $2.5 billion and net income increased 19.6% to $584.5 million. Over the same period, Monster's stock gained 17.8% versus 12.9% for the S&P 500, while On Holding's shares fell 30.5%; the author says he would prefer Monster as a long-term holding and expects that trend to continue into 2027.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.