Market Wrap, October 28, 2026

The S&P 500 ETF closed up 0.3%, holding gains after the Federal Reserve left its benchmark rate unchanged in the 3.75% to 4.00% range by a 10-2 vote, with Cook and Hammack dissenting in favor of a hike.

Chair Warsh told reporters the committee wants more data before moving again, that inflation remains too high, and that he is not surprised by recent market volatility, while flagging that oil's rise has pushed up near-term inflation expectations even as longer-term measures stay anchored. The rate decision came against a deteriorating backdrop in the Gulf: Iran rejected a US proposal, delivered through Qatar, for a seven-day plan to reopen the Strait of Hormuz, calling Washington's demand for an upfront transfer of its uranium stockpile and an immediate end to the blockade a list of "unacceptable demands." Brent settled up 1.26% at $115.32 a barrel, and CENTCOM said claims of mines in the strait's transit lanes are false. The 10-year Treasury yield rose to 5.034%, and the dollar index slipped modestly after the Fed statement. Separately, Israel's election count showed Netanyahu's bloc at 53 seats, short of a majority, with Likud accusing Arab parties of fraud as the opposition closed the gap.

Sector performance was split along AI infrastructure lines. Technology led at +0.8% on an Oracle-driven rally, with semiconductor equipment and memory names outperforming, Lam Research and Applied Materials both up more than 5%. Vertiv jumped 16.7% after raising its full-year outlook, and the Energy sector gained 0.5% as crude firmed. Real Estate was the weakest group, down 0.9%, with Essex Property off 4.2%, and Utilities fell 0.8%. Momentum and growth factors outperformed value and the equal-weighted index.

Company News

Oracle shares rose more than 10% after the company projected $225 billion or more in fiscal 2030 revenue, a non-GAAP operating margin above 40%, and $30 billion of free cash flow by fiscal 2029, easing concerns about AI spending.
Boston Scientific fell sharply after cutting fourth-quarter guidance alongside third-quarter results.
CoStar Group dropped nearly 14% following its results.
Lennox International slid after cutting its full-year adjusted EPS guidance to $21.00-$21.50 from $23.00-$24.00, citing competitive pressure and inflation.
C.H. Robinson and Teradyne both reported beats, but Teradyne shares fell despite guiding above consensus for the fourth quarter.
GE Vernova dropped even as it raised full-year revenue, margin and free cash flow guidance, after agreeing to acquire Trench Group for $9 billion.
Robinhood reported EPS of $0.60, ahead of expectations, with October net deposits already topping $13 billion.
Visa missed on revenue but raised its quarterly dividend 16% to $0.78 per share.
Penske Automotive agreed to be taken private by Penske Corporation and Mitsui & Co. at $212 per share, valuing the company near $16.3 billion.
Dropbox said it will cut about 9% of its workforce, with CTO Ali Dasdan departing, despite reaffirming revenue and margin guidance.