Chip Rally Extends, Dollar Firm as Fed Decision Looms
As of 2026-10-28 00:00 SGT
Key points
- Nikkei 225 closed up 1.73% at 63,268 as Anthropic's IPO filing extended a second straight day of gains for chip and AI-linked names
- USD/JPY holds at 157.86 (+0.25%), above yesterday's 157.63 high, after October consumer confidence and durable goods both beat forecasts
- Wall Street is mid-session higher, led by chip stocks for a second day, with Nvidia and AMD reported to be investing $4 billion in Meta; Boeing sank 9% after pushing back its 737 MAX production ramp
- Gold futures are at $4,076.40 (+0.94%), above yesterday's $4,044 high; WTI eased to $100.09 (-1.64%) as fears of a wider Middle East escalation fade
- The Fed's two-day meeting wraps Wednesday (02:00 SGT) with a hold widely expected (forecast 4.00%), though Chair Warsh and other hawks have flagged the case for further hikes ahead
Market snapshot
| Instrument | Level | Change |
|---|---|---|
| USD/JPY | 157.86 | +0.25% |
| EUR/USD | 1.1147 | -0.29% |
| Nikkei 225 (close) | 63,268 | +1.73% |
| Hang Seng (close) | 23,041 | -0.23% |
| Dow futures | 52,619 | +0.13% |
| S&P 500 futures | 7,765.00 | +0.65% |
| Nasdaq 100 futures | 29,822 | +1.31% |
| Gold futures | 4,076.40 | +0.94% |
| WTI crude | 100.09 | -1.64% |
| Bitcoin | 80,454 | +0.56% |
| US 10-yr yield | 4.986% | +0.0bp |
Foreign exchange — Dollar firm into the Fed
USD/JPY trades at 157.86 (+0.25%), above yesterday's 157.63 high, after October consumer confidence jumped well past forecasts and September durable goods orders rose 1.8% versus 1.7% expected, reinforcing the case for the Fed to hold steady at Wednesday's decision. EUR/USD slipped to 1.1147 (-0.29%), below yesterday's 1.1175 low, as the dollar stayed broadly bid with the Fed meeting now underway. Treasury yields ticked higher earlier in the session as the two-day meeting opened, even as the 10-year sits little changed at 4.986%. Through the rest of the NY session, dollar strength should hold as positioning squares up ahead of the Fed.
Equities — Chip rally extends, Boeing a drag
Chip stocks are gaining for a second straight day, with the Anthropic IPO filing continuing to lift AI-linked names across the Nasdaq; Nvidia and AMD are reported to be investing $4 billion in Meta as the AI buildout deepens. The Nikkei closed up 1.73% at 63,268 on the same theme, while the Hang Seng was little changed, down 0.23% at 23,041. Stateside, Boeing sank as much as 9% after saying it won't significantly ramp up 737 MAX production until late 2027, weighing on the Dow even as the broader tape holds a tech-led bid. Into the rest of the NY session, the chip-led rally should keep the tape supported even as laggards like Boeing diverge.
Macro — Fed decision looms Wednesday
The Fed's meeting that got underway Tuesday is widely expected to produce a hold (forecast 4.00%) on Wednesday, though Chair Warsh and other hawks have kept the case for further hikes in play. The 10-year Treasury yield sits at 4.986%, just under 5% and little changed on the day. Wednesday also brings Australia's CPI, the RBNZ decision, the UK's Autumn Budget and the Bank of Canada's rate call, making for a packed central-bank calendar. Into the NY close, positioning should stay cautious ahead of Wednesday's run of central-bank decisions.
Commodities — Gold extends gains, oil eases on Mideast calm
Gold futures are at $4,076.40 (+0.94%), above yesterday's $4,044 high. WTI crude eased to $100.09 (-1.64%), below yesterday's $100.33 low, as the S&P 500's rebound reflects fading fears of a wider Middle East escalation. In early Asian trade, gold should stay underpinned while oil remains headline-driven on Middle East news.
Geopolitics — Israeli election, fragile Ukraine truce
Israelis are voting in an election that will decide whether Prime Minister Netanyahu's wartime leadership continues, with Trump's backing a factor in the race. In Ukraine, a local ceasefire in Oleshky has been extended to November 1 even as Russia presses attacks elsewhere in the country. The de-escalation tone around these fronts has helped ease broader Middle East escalation fears, a factor behind Tuesday's pullback in crude. Through the NY session, headlines from Israel's election and the Ukraine ceasefire remain the key risk to watch.
Upcoming events
| Time (SGT) | Region | Event | Why it matters |
|---|---|---|---|
| 10/28 08:30 | AU | CPI y/y (forecast 4.2%) | Key input for the RBA's next move; an upside surprise would be AUD-supportive |
| 10/28 09:00 | NZ | Official Cash Rate (forecast 3.00%) | A rate cut or hold decision could move NZD sharply |
| 10/28 20:30 | UK | Annual Budget Release | Markets watching for tax and spending details and fiscal credibility |
| 10/28 21:45 | CA | Overnight Rate (forecast 2.50%) | Watch for signs of further easing and CAD volatility |
| 10/29 02:00 | US | Fed Funds Rate (forecast 4.00%) | A hold is expected; statement and press conference tone are the focus |
| 10/29 20:30 | US | GDP q/q (forecast 3.2%) | A read on US growth momentum heading into the Fed's next decision |