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Stock Market Today, Oct 28: Chip Rally, Fed Day
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Stock Market Oct 27: Anthropic IPO Lifts Tech
StockCram Editorial3 min readStocks rose Monday after Anthropic's IPO filing lifted tech, while oil held above $100 and traders waited for the Fed's Wednesday decision.
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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Executive Summary
- •US stocks rose on Monday, October 26, with the S&P 500 up 0.7%, the Nasdaq up about 0.8% and the Dow up 0.3%, as Anthropic's IPO filing revived the AI trade.
- •The Fed is expected to hold its rate at 3.75%-4.00% on October 28, with traders watching for hints about a December hike.
- •Microsoft, Alphabet and Amazon report on October 28 and 29, and about one-third of S&P 500 companies report this week.
- •Brent crude ended Monday at $109.92 a barrel, down 0.65%, after rising more than 6% over the prior two sessions.
Deep DiveToday's Market Movers
Anthropic's IPO filing sparks an AI-led rally on Wall Street
What Happened
The S&P 500 rose 0.7% and the Nasdaq Composite gained about 0.8% on Monday, October 26, after AI developer Anthropic filed to go public on the Nasdaq. The Dow Jones Industrial Average added 146.42 points, or 0.3%. Technology led the gains and chip stocks rose. Both the S&P 500 and the Nasdaq were coming off a second straight weekly loss.
Why It Matters
A big AI listing shows investors still want exposure to the AI boom after weeks of worry about how it gets paid for. Read our Anthropic IPO explainer for what is and isn't confirmed. It follows SpaceX's June listing as another major 2026 tech IPO, part of the wider AI IPO wave. Gains were narrow, though, and tech did most of the lifting.
Market Impact
Equities
S&P 500 +0.7%, Nasdaq +0.8%, Dow +0.3%
Rates
Little changed in the session; Treasury yields stayed high
FX
Dollar firmer on the risk-on mood; the dollar index is near 102
Commodities
Gold held in a tight range, squeezed between higher oil and lower yields
Fed meets Tuesday and Wednesday with a hold expected, and December guidance in focus
What Happened
The Federal Reserve's two-day policy meeting starts Tuesday, and the central bank is widely expected to hold its rate at 3.75%-4.00%. The decision comes at 2 p.m. ET Wednesday, followed by Chair Kevin Warsh's news conference. Futures imply only about a 10% chance of another 25-basis-point rate increase now.
Why It Matters
Oil-driven inflation worries keep the door open to a hike in December. What the Fed says about that path could move bond yields, the dollar and stock prices. For background on Warsh's stance, see what his first meeting as Fed chair meant, or check our stock market glossary for unfamiliar terms.
Market Impact
Equities
Stocks steady ahead of the decision
Rates
Fed funds rate expected to stay at 3.75%-4.00%; a December hike remains priced in by some traders
FX
Dollar index above 102; yen weaker near 157.7 per dollar
Commodities
Gold is held back by rate-hike expectations
Big Tech earnings week tests whether AI spending is paying off
What Happened
Microsoft shares rose about 1.5% and Alphabet fell about 1% on Monday ahead of earnings from both companies, plus Amazon, on Wednesday and Thursday. About one-third of S&P 500 companies report this week. Investors are watching cloud growth and spending plans. Alphabet's Google Cloud revenue grew 82% from a year earlier in its last report.
Why It Matters
These companies are among the largest in the S&P 500, so their results can move the whole index. Their spending plans also show how much AI demand is real, a key question in the debate over whether we are in another AI bubble. New to investing? Learn what a stock is.
Market Impact
Equities
Microsoft +1.5% and Alphabet -1.0% on Monday
Rates
No clear effect
FX
No clear effect
Commodities
No clear effect
Oil stays above $100 as Middle East supply worries persist
What Happened
Brent crude slipped 0.65% to $109.92 a barrel on Monday, October 26, and US WTI fell about 1.1% to about $101. Both stayed far above year-ago levels. Brent had risen 2.8% on Friday and 3.4% on Thursday. Analysts tie the surge to renewed Houthi attacks in Saudi Arabia and the end of Iran's floating oil stocks, which had supplied Chinese refiners.
Why It Matters
Costly oil pushes up fuel and shipping costs, which can lift inflation. That is why the Fed's tone on a December hike matters so much.
Market Impact
Equities
Energy is a small slice of the S&P 500, at 3.3%
Rates
Higher oil keeps inflation fears alive for central banks
FX
Dollar firm; oil-linked inflation worries support it
Commodities
Brent fell 0.65% to $109.92 and WTI fell about 1.1% to $101 on Monday
Five central banks decide on rates this week, with US GDP and inflation data due Thursday
What Happened
The Fed, European Central Bank and Bank of Japan are all expected to hold rates this week. The Bank of Canada is expected to raise its rate to 2.50% from 2.25%, and New Zealand is also expected to raise. The dollar index rose above 102 on Tuesday as the euro slipped and the yen weakened to about 157.7 per dollar.
Why It Matters
When central banks move in different directions, currencies swing. Those swings affect the profits of companies that sell overseas.
Market Impact
Equities
Investors positioned cautiously ahead of the decisions
Rates
Fed, ECB and BoJ expected to hold; Canada and New Zealand expected to raise
FX
Euro near $1.1228; yen near 157.7 per dollar; dollar index above 102
Commodities
Gold sits in a range
Historical Perspective
Similar Event
In 2022, oil jumped after Russia invaded Ukraine while the Fed started raising rates, and stocks faced both pressures at once.
What Happened Then
The S&P 500 fell about 19% that year as higher energy costs and rate hikes squeezed growth stocks, though oil later pulled back and the market recovered.
What to Watch Next
- →October 28, 2:00 PM ET: Federal Reserve rate decision, followed by Chair Warsh's news conference at 2:30 PM ET (prior: 3.75%-4.00%)
- →October 28: Bank of Canada rate decision (prior: 2.25%; expected 2.50%)
- →October 29, 8:30 AM ET: US Core PCE inflation for September, monthly and yearly (prior: 0.2% monthly, 3.0% yearly; forecast: 0.3% and 3.1%)
- →October 29: European Central Bank rate decision (prior: 2.65% and 2.50%; expected to hold)
- →October 30: Bank of Japan rate decision (prior: 1.25%; expected to hold)
Analysis Confidence
Conviction Level:★★★★★
Key Uncertainties
Tuesday's full-session results were not final when this was written, so moves described are from Monday's close. Oil prices differ across data providers, and the Fed's tone on December is unknown.
Sources
- • CNBC (2026-10-26)
- • Yahoo Finance (2026-10-26)
- • Charles Schwab (2026-10-26)
- • TheStreet (2026-10-26)
- • Seeking Alpha (2026-10-26)
- • Kitco (2026-10-26)
- • Investing.com (2026-10-26)
- • Business Recorder (2026-10-27)
- • FXStreet (2026-10-27)