US stocks edged higher for a third straight day on Wednesday, October 28,…

US stocks edged higher for a third straight day on Wednesday, October 28, after the Federal Reserve held interest rates steady, as expected. The S&P 500, which tracks the 500 biggest US companies, rose 0.28% to 7,743.98. The Dow Jones Industrial Average gained about 98 points, or 0.19%, to 52,475.10, and the tech-heavy Nasdaq Composite added 0.27% to 26,549.85. It was the first time since December 2025 that the S&P 500 closed higher on a Fed decision day. The Fed kept its key rate in a range of 3.75% to 4%, pausing after September’s hike. The vote was 10-2, and both dissenters wanted to raise rates again, a sign that some officials are still worried about stubborn inflation. Fed Chair Kevin Warsh gave no clear signal about December, but traders now see about an 85% chance of a hike that month, up from 78% a day earlier. Warsh said politics played “no role” in the decision, with US midterm elections less than a week away. He also acknowledged that higher rates are affecting the AI building boom, and he announced the Fed will hold fewer rate-setting meetings starting in 2027. In company news, Oracle jumped about 11% on a strong long-term cash flow outlook that eased worries about its AI spending. After the bell, Microsoft rose on solid cloud sales while Alphabet fell on disappointing results; those after-hours moves aren’t final until Thursday’s session.

Philippine stocks gave back most of Tuesday’s rebound. The PSEi, the index of the 30 biggest companies on the Philippine Stock Exchange, fell 1.87% to 5,653.55, as oil prices and inflation worries weighed on investors. Services stocks fell the most, down 2.95%, while mining and oil was the only sector to rise. Wednesday’s drop came before the Fed’s decision, which was announced early Thursday morning, Manila time. The peso got a small break. It strengthened 14.5 centavos to close at ₱64.025 per dollar, ending a six-day streak of record lows. Still, it touched a new intraday low of ₱64.18 before recovering, and it remains above ₱64. Analysts said the peso’s slide has been driven by several forces at once, including high global oil prices and Middle East tensions that threaten energy supplies. Last week’s surprise BSP rate hike to 5.50% has not reversed the trend.

The Fed’s decision matters for the peso because of what it hints about the future. The Fed didn’t raise rates on Wednesday, but two officials wanted to, and markets now expect a hike in December. When traders expect US rates to stay high or rise, US dollar investments stay attractive, which keeps pressure on currencies like the peso. That is why a small one-day bounce in the peso doesn’t mean the pressure is over. For Filipinos, the takeaway is that relief probably won’t come quickly from abroad. The BSP has already raised rates aggressively, yet the peso remains above ₱64, oil is still elevated, and inflation is running above 7%. OFW families continue to get more pesos for every dollar they send home, but households face higher costs for fuel, electricity, and imported goods. Investors will be watching whether this week’s Big Tech earnings keep the AI rally going and how markets react to US midterm results next week, since both can move the dollar and, in turn, the peso.