Chip Stocks Lift S&P 500 as Oil Prices Ease

U.S. stocks moved higher Tuesday as semiconductor shares extended their gains, oil prices retreated, and investors assessed corporate earnings ahead of the Federal Reserve's latest policy decision. The S&P 500 gained 0.3%, the Nasdaq Composite advanced 0.6%, and the Dow Jones Industrial Average traded near unchanged as the central bank began its two-day meeting.

Broadcom shares climbed more than 3% after a coalition of Bank of America, Citi, and Morgan Stanley, together with Blackstone, announced $63 billion in financing for the purchase of Broadcom's technology for Anthropic. Other semiconductor companies also advanced, with Advanced Micro Devices rising nearly 3%, Micron Technology gaining more than 1%, and Nvidia increasing around 1%.

The gains extended a rally from the previous session, when artificial intelligence-related stocks helped lift major indexes following Anthropic's filing to go public on the Nasdaq. The potential offering would add to a series of major technology listings in 2026, following SpaceX's June listing.

Lower crude prices also supported market sentiment as investors watched developments in a regional conflict and hoped for de-escalation. U.S. West Texas Intermediate crude futures fell nearly 1% to around $101 per barrel, while Brent crude, the global benchmark, declined about 1% to roughly $114 per barrel.

Investors also monitored the Federal Reserve's policy meeting, which began Tuesday. The central bank was expected to leave interest rates unchanged, but market participants sought indications of whether another increase could occur before the end of the year.

Thomas Block, Washington policy strategist at Fundstrat, highlighted the potential significance of the vote even if policymakers maintained current rates.

"If, as expected, there is no change in rates, it will still be interesting to see what the vote is after the swings in the last two meetings," wrote Thomas Block, Washington policy strategist at Fundstrat.

Block also discussed the political timing of a possible rate decision ahead of the national election.

"While the Fed views itself above partisan politics, it would be unlikely that the Fed would move rates a week before a national election," wrote Thomas Block, Washington policy strategist at Fundstrat.

Corporate earnings produced mixed reactions across individual stocks. JetBlue shares surged 11% despite a larger-than-expected third-quarter loss, as the airline projected further margin expansion in the fourth quarter. UPS traded higher after reporting results that exceeded Wall Street expectations, while Whirlpool fell more than 1% following an unexpected quarterly loss.

UPS reported adjusted earnings of $1.69 per share on revenue of $22.9 billion, exceeding analyst expectations of $1.63 per share and $22.29 billion in revenue, respectively, according to LSEG data. The delivery company also raised its full-year consolidated revenue outlook to approximately $92.6 billion from its previous projection of $91.2 billion and forecast fourth-quarter revenue of $25.7 billion.

Other companies also reported results before the opening bell. PayPal shares slipped 1% after third-quarter revenue came in at $8.58 billion, below the $8.71 billion expected by LSEG analysts, although earnings exceeded estimates and the company raised its full-year profit forecast. Corning gained nearly 3% after reporting adjusted earnings of 91 cents per share on revenue of $5.08 billion, surpassing analyst estimates of 88 cents per share and $5.02 billion in revenue.

Boeing shares rose nearly 1% in premarket trading after third-quarter revenue reached $24.19 billion, above analysts' expectations of $23.84 billion. However, the company reported an adjusted loss of 34 cents per share, compared with the anticipated loss of 21 cents per share.

Separately, the Commerce Department reported that U.S. durable goods orders increased 1.8% in September, accelerating from a 0.1% rise in August and exceeding the 1.7% forecast from Dow Jones. Orders excluding transportation rose 0.5%, while orders excluding defense increased 2.2%.

Investors entered the Federal Reserve meeting with attention focused on the interest-rate outlook and the potential effects of monetary policy on financial markets. The central bank's two-day meeting was scheduled to begin Tuesday, with its policy decision and accompanying signals expected to guide expectations for the remainder of the year.