Federal Reserve Holds Interest Rates Steady Amid Strong Economic Growth
New York stocks advanced for a third session as the Federal Reserve voted to keep its benchmark interest rate unchanged, while robust earnings from major technology and semiconductor firms eased investor anxiety. The Dow Jones Industrial Average gained 97.53 points, or 0.19%, to close at 52,475.10 on the New York Stock Exchange, according to 매일일보. The S&P 500 added 21.38 points, or 0.28%, to finish at 7,743.98, while the tech-heavy Nasdaq Composite rose 72.04 points, or 0.27%, to 26,549.85.
October Federal Open Market Committee Meeting Decisions
The Federal Reserve concluded its two-day meeting by maintaining its target federal funds rate at 3.75% to 4.00%. Ten of the 12 FOMC members voted in favor of the freeze, while Lisa Cook and Beth Hammack dissented in favor of a 0.25 percentage point increase. In its policy statement, the central bank upgraded its assessment of economic activity from solid to strong, though it noted that inflation remains elevated. Kevin Walsh acknowledged during a post-meeting press conference that financial conditions have tightened for certain households and businesses since the September rate cut, but maintained that overall economic growth remains resilient.
Oracle and SK Hynix Drive Tech Sector Gains
Oracle shares surged 10.73% after the company projected that its fiscal 2030 revenue will exceed $225 billion, driven by heavy artificial intelligence infrastructure spending. The company told investors that capital expenditures will peak across fiscal 2027 and 2028 before free cash flow turns positive in the second half of fiscal 2028. Meanwhile, SK Hynix reported record third-quarter operating profit of 83.3 trillion Korean won and announced that its memory production capacity is largely sold out through 2029. That performance fueled a 13.30% rally in the company’s American Depositary Receipts, lifting other semiconductor names including Micron and Arm.
Geopolitical Pressures Limit Broader Market Advance
Crude oil prices climbed following reports of attacks on energy infrastructure in the Middle East, capping broader gains across Wall Street. Houthi forces claimed responsibility for strikes targeting Saudi Arabian oil facilities, while separate security incidents disrupted operations near Aden. Energy markets also digested a weekly decline of roughly 1.9 million barrels in U.S. crude inventories. Losses were kept in check as diplomatic talks between the United States and Iran showed tentative signs of progress through Qatari mediation.
Frequently Asked Questions About the Rate Decision
How did Federal Reserve leadership vote on the October rate decision?
Ten members of the 12-person FOMC voted to keep the federal funds rate at 3.75% to 4.00%. Lisa Cook and Beth Hammack dissented, advocating for a 0.25 percentage point rate hike.
What specific financial targets did Oracle provide for 2030?
Oracle projected fiscal 2030 revenue of more than $225 billion with an annualized growth rate exceeding 35% starting in fiscal 2026. The company also set an adjusted operating margin target above 40%.
How did major technology stocks react in after-hours trading?
Microsoft shares rose more than 4% in extended trading after reporting a 48% jump in Azure cloud revenue for its fiscal first quarter. Conversely, Alphabet shares dropped over 8% in after-hours trading after missing overall revenue expectations despite a 103% surge in Google Cloud sales.
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