US stocks eye big tech earnings as Fed holds rates steady

New York - US stocks closed higher on Wednesday, Oct 28, after the Federal Reserve decided to keep interest rates unchanged. The central bank's decision came after Chairman Kevin Warsh stated that the Fed needs more data to tackle inflation, despite persistently high prices. The market was focused on the latest earnings reports from major US tech companies, with analysts emphasizing the importance of deciphering the deluge of financial results.

Microsoft and Alphabet, the parent company of Google, were among the key earnings that investors were waiting for. The tech sector's performance was heavily influenced by the strong results from SK Hynix, a South Korean chipmaker that reported a remarkable increase in operating profits. The company's prospects were further boosted by its plans to return US$45 billion to shareholders.

Despite some early optimism, AI stocks faced a setback earlier in the week due to concerns about the high investments and debt levels in the sector. However, the positive outlook for AI companies was rekindled after Anthropic, an AI startup, reported a staggering revenue surge of 1,300% in the first half of the year. This development, coupled with Anthropic's anticipated IPO next month, has generated significant enthusiasm in the market.