(Oct 29) : Stocks edged up as the Federal Reserve held rates steady and refrained from offering a clear signal on whether it will hike in December.

The S&P 500 rose 0.3%. Oracle Corp. soared 11% on a long-term outlook for free cash flow. Microsoft Corp. jumped in extended trading on solid cloud sales. Alphabet Inc. sank on disappointing results. Short-dated Treasuries gained. An oil rally waned in late hours as the Wall Street Journal said US Vice President JD Vance reached out to an Iranian hard-liner to revive peace talks.

The Federal Open Market Committee voted 10-2 to hold its benchmark federal funds rate in a range of 3.75% to 4%. In their post-meeting statement, policymakers said they hoped incoming data would help inform their next decision.

Fed Chair Kevin Warsh noted officials have “made clear our readiness to act as circumstances require, and we have shown our willingness to act.”

“The Fed appears comfortable being patient for now as financial conditions have evolved broadly in line with expectations,” said Luis Alvarado at Wells Fargo Investment Institute. “But patience should not be confused with complacency.”

Warsh also said the central bank will phase in an adjusted meeting schedule, with plans to hold rate-setting votes at seven out of eight meetings next year.

The Fed’s new meeting schedule appears consistent with Warsh’s push for less forward guidance and less frequent signaling to markets, according to Tony Miano at Wells Fargo Investment Institute.

“The biggest change from the Fed today wasn’t to policy rates but rather to the forward calendar of making decisions,” said Ian Lyngen at BMO Capital Markets. “The most relevant question at the moment is what meetings will be devoted to things other than potentially changing rates.”

If nothing else, short-dated notes rose as Warsh left the market with the impression that one hike — in September — was effective thus far, Lyngen added. That would imply that following a December move, a third hike might not be seen as necessary, he noted.

While traders maintained bets officials will raise rates in December, they trimmed wagers on additional hikes in 2027. Futures markets are no longer fully pricing three more hikes this cycle.

uploaded by Isabelle Francis