Memory chips rally as Fed decision looms
SMH•U.S. indexes were little changed as memory-chip stocks rose after SK Hynix reported upbeat results. The Roundhill Memory ETF gained more than 5%, while markets priced in a 91% chance the Fed would leave rates unchanged.
1. Chips gain ahead of Fed
Wall Street’s main indexes were little changed early Wednesday as investors weighed SK Hynix’s strong earnings report and awaited the Federal Reserve’s policy decision. Semiconductor stocks were among the groups showing strength.
2. Memory ETF rebounds
The Roundhill Memory ETF rose more than 5% after SK Hynix’s results, but remained roughly 35% below its June 22 record closing high.
3. Rate expectations
CME’s FedWatch tool showed a 91% chance the Federal Open Market Committee would leave rates unchanged after its two-day meeting, compared with a 9% chance of a 25-basis-point hike. Fed funds futures implied about 24 basis points of additional tightening by year-end and roughly 75 basis points of cumulative rate hikes through the end of 2027.
