CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

LIVE MARKETS-Memory chips rally as Fed decision looms 

By Reuters News

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

MEMORY CHIPS RALLY AS FED DECISION LOOMS

Wall Street's main indexes are little changed early Wednesday as investors digest a strong earnings report from South Korea's SK Hynix, which is boosting memory-chip stocks ahead of several key catalysts.

The next major test for the AI trade arrives later in the day with the Federal Reserve's policy decision and a fresh round of closely watched corporate earnings.

According to CME's FedWatch tool, markets see a 91% chance the Federal Open Market Committee leaves rates unchanged at the conclusion of its two-day meeting, while the odds of a 25-basis-point hike stand at just 9%.

Looking beyond today's decision, Fed funds futures imply roughly 24 basis points of additional tightening by year-end and about 75 basis points of cumulative rate hikes through the end of 2027.

Ahead of the Fed announcement, a majority of S&P 500 .SPX sectors are in the red. Real estate .SPLRCR is the weakest performer, down more than 1%, while healthcare .SPXHC is bucking the trend with a gain of around 0.5%.

Beneath the surface, transports .DJT and gold and silver miners .XAU are under pressure, while semiconductor stocks .SOX and biotech .NBI are showing strength.

One pocket of outperformance is memory chips. The Roundhill Memory ETF is up more than 5% after SK Hynix's upbeat results, though the fund remains roughly 35% below its June 22 record closing high. Despite Wednesday's rally, the ETF's steep decline from its June peak suggests parts of the AI trade are still working to recover from this year's sharp pullback.

Here is a snapshot of where markets stood at 10:03 a.m. ET.

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

MOMENTUM HOLDS THE LEAD DESPITE OCTOBER ROTATION CLICK HERE

RBNZ SURPRISES, COULD FED OR BOC BE NEXT? CLICK HERE

EUROPEAN STOCKS HAVE ROTATED, WILL THEY DO SO AGAIN? CLICK HERE

SHOULD FRENCH SPREADS BE COMPARED TO ITALY 2011? CLICK HERE

RISING FX VOLATILITY SPELLS TROUBLE FOR CARRY TRADES CLICK HERE

A MORNING FOR STOCKPICKERS CLICK HERE

BEFORE THE BELL: EUROPEAN BANKS BRIEFLY IN SPOTLIGHT CLICK HERE

MORNING BID: RBNZ THROWS MARKETS A CURVEBALL CLICK HERE

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.