The Federal Reserve opted to hold interest rates unchanged in a widely expected move, keeping policy steady ahead of new economic indicators. Market participants are heavily scrutinizing the forthcoming third-quarter gross domestic product report alongside September's Personal Consumption Expenditures price index, the central bank's primary inflation gauge. At the same time, expectations for future borrowing costs have risen sharply among traders tracking macroeconomic vulnerabilities.
Key points
Investors are tracking the upcoming third-quarter gross domestic product release to evalu…: Investors are tracking the upcoming third-quarter gross domestic product release to evaluate broader domestic economic strength.
Ongoing Middle East conflict and an associated oil shock are reinforcing market fears of…: Ongoing Middle East conflict and an associated oil shock are reinforcing market fears of persistent long-term inflation.
Financial markets are preparing for tighter monetary policy as the Federal Reserve evalua…: Financial markets are preparing for tighter monetary policy as the Federal Reserve evaluates its preferred inflation benchmark.
Sources checked by our analysis pipeline: 1
05:55:06 PM IST, 29 Oct 2026
US Stock Market Live Updates: Fed holds rates steady as investors await inflation data
The US Federal Reserve kept interest rates unchanged on Wednesday, as expected, while awaiting further inflation data. Investors turned their attention to September's Personal Consumption Expenditures price index, the central bank's preferred inflation gauge, and the third-quarter GDP reading due later on Thursday. According to the CME FedWatch Tool, traders saw more than an 81% chance of a rate hike in December. LSEG data also showed money market participants pricing in another rate increase by mid-2027, amid elevated inflation measures and an oil shock linked to the Middle East conflict.
Wall Street analysts are growing increasingly cautious about Google's core revenue engine amid shifting consumer engagement patterns. Financial institutions are concerned that commercial returns are failing to keep pace with the sheer volume of search activity. This trend threatens to compress margins as infrastructure expenses climb without an equivalent rise in ad conversions.
Market participants responded favorably to a dual catalyst of stronger-than-expected financial results and a formal rating adjustment. BNP Paribas improved its stance on the firm as reported earnings surpassed prior targets. This combination spurred renewed buying interest, driving the equity higher in recent trading sessions.
Investor sentiment turned negative across major exchanges following the tech giant's latest financial update. Market participants are growing increasingly anxious about the massive capital expenditures required to develop advanced technology, leading to an immediate pullback during the morning session.