US Stocks Rise for Third Day on Fed Hold, AI Earnings; Oracle Jumps 10.73%

U.S. stocks rose for a third straight session as the Federal Reserve held interest rates steady and AI-related companies posted strong earnings. Oracle jumped more than 10% after laying out plans to ease the funding burden from its AI investments.

On Oct. 28, the Dow Jones Industrial Average closed up 0.19% at 52,475.10 on the New York Stock Exchange. The S&P 500 rose 0.28% to 7,743.98, while the Nasdaq Composite gained 0.27% to 26,549.85. The Philadelphia Semiconductor Index also advanced 1.75%.

The Fed left its benchmark rate unchanged. The vote was split 10-2, with 10 members supporting a hold and two favoring a rate increase. The central bank upgraded its assessment of economic activity to "strong" from "solid," but Chair Kevin Warsh gave no clear signal on whether there would be another increase in December, saying the decision would depend on incoming data.

Oracle surged 10.73% after unveiling growth targets and a funding plan at its investor day. The company set a fiscal 2030 revenue target of $225 billion and said capital expenditures would peak in 2027-2028, with free cash flow turning positive in the second half of 2028. It plans to generate more than $30 billion in annual free cash flow in 2029.

Additional external fundraising through 2030 will be capped at $20 billion, with half to come from debt and half from equity. Oracle also plans to reduce its own investment burden by using direct GPU supply from customers, customer prepayments and supplier financing.

Other AI-related stocks also gained after reporting earnings. SK Hynix ADRs jumped 13.30%, while Vertiv, a maker of power and cooling equipment for data centers, rose 16.48%. GE Vernova also raised its outlook on strong earnings and new orders.

Energy prices and long-term Treasury yields, however, remained a drag on sentiment. International oil prices climbed more than 3% after reports of Houthi attacks on facilities and a decline in U.S. crude inventories. The yield on the U.S. 10-year Treasury also remained above 5%.