US stocks closed higher on October 27, 2026, with the Nasdaq Composite leading gains as chipmakers advanced and investors weighed corporate earnings ahead of the Federal Reserve’s policy decision.

Key Takeaways

  • The Nasdaq rose 1.18%, while the S&P 500 gained 0.60% and the Dow added 0.05%.
  • Chip stocks gained for a third straight session, while Meta shares fell after the company increased the size of its AI-related equity fundraising.
  • The Fed began a two-day meeting, with markets widely expecting its target range to remain at 3.75% to 4%.

US stocks climb as chipmakers advance

The Nasdaq’s 1.18% rise outpaced the other major US indexes. The S&P 500 advanced 0.60%, and the Dow Jones Industrial Average edged up 0.05%.

Chip stocks extended their gains to a third consecutive session amid market buzz about an impending Anthropic initial public offering. Chuck Carlson, CEO of Horizon Investment Services, said the Anthropic news appeared to be providing a relief rally for AI stocks, particularly semiconductor companies.

AI-related shares had faced pressure in recent weeks amid concerns about debt-funded spending and rising borrowing costs. Despite the recent gains, the Philadelphia SE Semiconductor index remained more than 20% below its June 22 record closing high.

Meta shares fell after the company raised the size of its equity fundraising to $97.5 billion to fund its AI expansion. Energy was the weakest S&P 500 sector as crude prices eased.

ItemDetails
Nasdaq CompositeUp 1.18%
S&P 500Up 0.60%
Dow Jones Industrial AverageUp 0.05%

Earnings deliver mixed share moves

Nearly half of S&P 500 companies had reported third-quarter results, and 83% had beaten expectations, based on the latest LSEG data.

Boeing fell after reporting a larger-than-expected quarterly loss, while Sherwin-Williams declined after missing profit estimates. Xylem shares slid after the company trimmed its full-year forecasts.

UPS advanced after raising its annual revenue and profit forecasts, and Royal Caribbean gained after lifting its full-year profit outlook.

Fed meeting begins

The Federal Reserve began its two-day policy meeting on Tuesday. Markets widely expected the central bank to leave the federal funds target range unchanged at 3.75% to 4%; that expectation was not a policy decision.

Next milestone

Microsoft and Alphabet were due to report earnings on Wednesday, October 28, followed by Amazon on Thursday.

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