US stocks opened higher on Tuesday, October 27, as gains in chipmakers and AI-related shares, along with a slide in oil prices, offset caution ahead of the Federal Reserve’s October policy decision. The three US indices moved higher shortly after the opening bell with the S&P 500 gaining 0.3% and the tech-heavy Nasdaq Composite advancing over 0.5%. The Dow Jones Industrial Average rose 74 points, or 0.1%.
Technology stocks got support from Broadcom, whose shares rose more than 2% after a group of banks, including Bank of America, Citi and Morgan Stanley, along with Blackstone, announced $63 billion in financing for the purchase of Broadcom’s technology for Anthropic. The development lifted sentiment across chipmakers, with Micron Technology up more than 2%, Advanced Micro Devices gaining nearly 2% and Nvidia rising around 1%.
The gains build on the previous session, when the major averages ended higher after Anthropic filed to go public on the Nasdaq. The listing would be another major tech IPO of 2026, following SpaceX’s blockbuster debut in June.
Oil prices also eased as investors hoped for a de-escalation in the regional conflict. US West Texas Intermediate futures shed nearly 1% to trade around $101 per barrel, while Brent crude futures slipped about 1% to roughly $114 a barrel. Meanwhile, the dollar index, which tracks the greenback against a basket of major currencies, gained 0.26% to trade at 102.228.
In corporate news, UPS shares added more than 1% after the delivery giant reported better-than-expected third-quarter results. JetBlue jumped more than 11%, despite a wider-than-expected quarterly loss, as the airline said it expects further margin expansion in the fourth quarter. Whirlpool, however, fell 7% after posting a surprise quarterly loss.
All eyes are now on the Fed, which began its two-day policy meeting today. The central bank is widely expected to keep rates unchanged, but traders will look for clues on whether another rate hike could follow before the year-end.
Thomas Block, Washington policy strategist at Fundstrat, said that even if rates are held, the vote will be worth watching after the swings seen in the last two meetings. He added that it would be unlikely for the Fed to move rates a week before a national election. Investors will also track durable goods orders, consumer confidence and new home sales data.
In Europe, markets were trading lower. The pan-European Stoxx 600 was down 0.35%, with the UK’s FTSE 100 leading the losses, falling 0.99%. France’s CAC 40 shed 0.27%, while Germany’s DAX dropped 0.10%.
Asian markets closed mostly higher. Japan’s Nikkei 225 ended 1.73% up, while South Korea’s Kospi surged 3.09%. Australia’s S&P/ASX 200 gained 0.46%, while China’s CSI 300 closed 1.32% lower.
Closer at home, the benchmark indices ended mixed on Tuesday, as profit-taking in information technology stocks and continued pressure on financials weighed on the frontline indices, while the broader market outperformed.
The BSE Sensex fell 8 points to 73,599, while the NSE Nifty declined 3.45 points to 22,750. The Nifty Bank lost 392 points to settle at 53,975, while the Midcap index gained 565 points to end at 57,030. Capital market stocks extended their gains, tracking reports on long-term capital gains tax and securities transaction tax, with BSE shares rising more than 2% during the session.
Read more: Why stock market ended mixed today: Sensex, Nifty flat as Midcap Index gains 565 points