Market Report, 2026-10-28

Stocks rallied on Wednesday as the Federal Reserve’s interest rate decision came as little surprise to the market. The Fed was widely expected to hold rates steady, as reflected in federal funds futures pricing. Nevertheless, an interesting development emerged from the meeting. As Kevin Warsh has emphasized his agenda of reducing communication with the market, the Fed has decided to gradually reduce the number of meetings devoted to interest rate decisions each year. While the total number of meetings will remain at eight in 2027, one of those meetings will focus on “broad monetary policy strategy” rather than setting interest rates. By 2028, interest rate votes will take place at only six of the eight meetings.

Stocks rallied broadly. The Dow Jones Industrial Average rose 98 points to 52,475. The NASDAQ gained 0.27% to 26,550. The S&P 500 advanced 0.28% to 7,744. Most sectors ended the day in the green, with the exceptions of real estate, utilities, and communication services.

The bond market remained nearly flat. The US 5-year Treasury yield declined by 1 basis point to 4.83%, while the 10-year yield rose 2 basis points to 5.01%. Gold prices remained unchanged.

None of today’s economic data releases stood out. The US trade balance, wholesale inventories, and retail inventories generally remained at levels similar to those of the previous month.

Tomorrow, estimates for last quarter’s GDP and personal consumption data will be released. Both will provide valuable insights into the future direction of monetary policy.