Fed Held Rates and Stocks Edged Higher, Then Microsoft Rose and Alphabet Slid on Earnings

Wall Street got answers to both of its big questions on Wednesday. The Federal Reserve held interest rates steady at 2 p.m. Eastern, the major indexes drifted to a modestly higher close, and then Microsoft and Alphabet reported quarterly results after the bell. The two reports landed very differently, and the market's verdict showed up within a couple of hours of the close. In an update timestamped at 6:02 p.m. Eastern, the live session coverage from StockTitan showed Microsoft up 4.9 percent in after hours trading on accelerating cloud growth, while Alphabet class A shares, after the company missed analyst estimates, were down 10.8 percent.

First, the regular session. The Dow Jones Industrial Average rose 97.53 points, or 0.19 percent, to 52,475.10. The S&P 500 added 0.28 percent to 7,743.98, the Nasdaq Composite gained 0.27 percent to 26,549.85, and the small cap Russell 2000 climbed 0.41 percent to 2,830.51, according to Yahoo Finance's live market coverage, with StockTitan separately reporting that the major indexes all finished higher. The moves were modest because traders spent most of the day waiting, first on the Fed and then on the earnings that followed.

The quiet finish extended a steady week. On Tuesday the S&P 500 closed up 0.60 percent and the Nasdaq jumped about 1.18 percent, lifted by a $63 billion financing arrangement tied to Broadcom chips bound for Anthropic, a session we covered in our Tuesday close report. On Wednesday, individual names told their own stories. Data center equipment maker Vertiv jumped 16.6 percent after orders excluding acquisitions more than doubled, while solar company Enphase fell 16 percent after forecasting lower fourth quarter sales, per StockTitan.

The Fed held rates steady

The central bank wrapped up a two day meeting and did what markets had largely expected, leaving the benchmark rate in a range of 3.75 to 4 percent. The vote was 10 to 2, with Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting because they preferred an increase, per StockTitan's recap. The pause did not catch anyone off guard, so attention quickly shifted to December. Traders priced in roughly an 85 percent chance that the Fed raises its benchmark rate by a quarter point at the next meeting on December 9, according to the same coverage. We explained why the statement and press conference often matter more than the rate number itself in our Fed preview.

Chair Kevin Warsh's press conference began at 2:30 p.m. Eastern, and one early headline was procedural rather than about rates. Warsh said the central bank will hold one fewer policy setting meeting next year, according to Fed day coverage from CNN. The practical point for households is simpler: a benchmark rate holding near 4 percent keeps borrowing costs for mortgages, car loans and credit cards elevated for now.

Microsoft rose, Alphabet missed

Microsoft's report covered the first quarter of its 2027 fiscal year, which ended September 30. Revenue rose 19 percent to $92.3 billion, operating income climbed 21 percent to $45.9 billion, and GAAP diluted earnings per share rose 32 percent to $4.92, according to the company's earnings release filed with the SEC. Microsoft Cloud revenue accelerated to 30 percent growth, reaching $63.9 billion, and Azure revenue jumped 48 percent. The stock was up 4.9 percent in after hours trading as of StockTitan's 6:02 p.m. Eastern update.

Alphabet grew faster overall but still disappointed. Third quarter revenue rose 25 percent to $127.6 billion, and Google Cloud revenue roughly doubled, up 103 percent to $30.7 billion, according to Alphabet's earnings release filed with the SEC. Measured against expectations, though, the quarter fell short. Adjusted earnings of $2.67 per share missed the $3.02 analysts expected, and revenue of $127.58 billion came in slightly below the $128.22 billion forecast, per CNBC's report on the results, which cited LSEG estimates, a comparison also carried in News Beep's coverage of the report. A sourcing note: Alphabet's own release does not publish an adjusted earnings line. The $2.67 figure corresponds to GAAP earnings of $2.12 per share plus the 55 cents that the quarter's $8.7 billion net loss on equity securities subtracted, per the SEC release, so the adjusted number effectively strips out that investment loss. Alphabet class A shares were down 10.8 percent in after hours trading as of StockTitan's 6:02 p.m. Eastern update.

The capital spending question hung over both reports. Alphabet's capital expenditures reached $51.4 billion in the quarter, up from $24.0 billion a year earlier, per its SEC release. Bulls argue the buildout of AI and cloud infrastructure is laying the foundation for years of growth, and Azure's 48 percent and Google Cloud's 103 percent growth give them real ammunition. Skeptics worry the spending is running well ahead of the returns. Wednesday night's split reaction suggests investors are now grading that question one company at a time rather than treating Big Tech as a single trade.

Oil and yields stayed restless

While stocks idled, crude climbed after Yemen's Houthi group claimed it struck Saudi Arabia's largest refinery, the roughly 550,000 barrel per day Ras Tanura facility, with a ballistic missile. Saudi authorities had not confirmed the strike or any damage, according to Reuters reporting carried by CNBC. West Texas Intermediate crude for December delivery settled at $102.78 a barrel, up $2.88, or about 2.9 percent, from Tuesday's $99.90 settlement, while December Brent rose 1.3 percent to close at $115.32, per the same coverage. Energy prices feed into gasoline and heating costs, so a sustained rise matters for household budgets even on a calm equity day.

The 10 year Treasury yield rose about five basis points to end the day at 5.05 percent, per Yahoo Finance's market data for the session, keeping the benchmark above the 5 percent mark it had reclaimed as the Fed meeting got underway. Notably, higher oil and higher yields did not knock stocks lower. All four major indexes finished in the green, which suggests underlying sentiment stayed steady through the afternoon.

What it means for a household

A day like Wednesday is a useful case study in not overreacting. The averages barely moved during regular hours, and then the biggest news of the day arrived after most people had closed their screens. For a long term investor, the honest takeaway is that one Fed statement and one night of earnings, even a night when a giant like Alphabet drops more than 10 percent in late trading, rarely change the arithmetic of a decades long plan. What changes outcomes is steady contributions and time.

The calculator below makes that point with simple, hypothetical math. It has nothing to do with Wednesday's session and is not a forecast. It just shows how a fixed monthly contribution can compound over time at an assumed rate, so you can see why a single headline day matters far less than whether you keep investing through it.

None of this is advice to buy or sell anything. It is a snapshot of a market that digested a widely expected Fed decision, then got a split verdict from two of the world's largest companies. If your interest is simply keeping your own plan on track, the steadiest response to a day like this is usually to check your contributions and then close the tab until the dust settles.

Index levels and the 10 year yield in this report reflect Yahoo Finance's live market coverage for Wednesday, October 28, 2026, with StockTitan's live blog confirming the higher close. The WTI and Brent settlements reflect Reuters reporting carried by CNBC. Microsoft and Alphabet figures come from the companies' earnings releases filed with the SEC on October 28, the adjusted earnings comparison comes from CNBC citing LSEG estimates as corroborated by News Beep, and the after hours reactions reflect StockTitan's entry timestamped 6:02 p.m. Eastern, about two hours after the 4 p.m. close. After hours prices can move further before Thursday's open.