U.S. markets eye Fed decision, Robinhood earnings and Big Tech reports

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U.S. markets eye Fed, tech

Highlights

Fed interest-rate decision at 2 p.m. ET closely watched as 10-year Treasury yield hits 4.99% and shorter-term yields remain elevated.
Robinhood shares drop 7% after Q3 net income misses estimates, now trading 38% below last October’s high ahead of CEO Vlad Tenev's CNBC appearance.
Alphabet reports after the bell down almost 2% over three months and 21% below May high, while Microsoft is up 36% over three months.

Fed decision and earnings set Wednesday agenda

As reported by CNBC, traders are watching the Federal Reserve's interest-rate decision due at 2 p.m. ET, with Treasury Secretary Scott Bessent also scheduled to appear on the network in the 4 p.m. hour after the announcement.

Going into the decision, the 10-year Treasury note yield stands at 4.99%, while the two-year note yields 4.74%. Shorter-dated government debt also remains elevated, with the one-year Treasury bill at 4.47%, the six-month bill at 4.36%, the three-month bill at 4.14% and the one-month bill at 4%.

High-yield and investment-grade bond funds are also in focus as borrowing costs stay high. The iShares 0-5 Year High Yield Corporate Bond ETF yields 7.13%, the iShares iBoxx High Yield Corporate Bond ETF yields 6.06%, the State Street SPDR Bloomberg High Yield Bond ETF yields 6.79%, and the Fidelity Corporate Bond Investment Grade ETF yields 4.8%.

Robinhood shares fall 7% after the bell after the online brokerage reports third-quarter results that miss on earnings and meet revenue expectations, as net income declines. The stock is now down 38% from the high it reached last October, and Chief Executive Vlad Tenev is scheduled to appear on CNBC in the 10 a.m. hour ET.

Technology and healthcare names test sector sentiment

Market attention also centers on whether elevated rates begin to pressure parts of the artificial intelligence and data center trade that depend heavily on financing. CNBC's Jim Cramer says the theme remains viable, but argues that companies with large borrowing needs face more uncertainty as rates rise.

Among healthcare names, Biogen, Boston Scientific and GSK are due to report before the bell. Biogen shares are up 26% over three months and recently hit a new high, while Boston Scientific is down about 1% over the same period and sits 57% below its November 2025 high; GSK is down 2% in three months and 18% below its February high.

After the bell, Alphabet and Microsoft are set to report, adding to scrutiny of large-cap technology valuations. Alphabet is down almost 2% over three months and 21% below its May high, while Microsoft is up 36% over three months and remains flat over the past year.

Our earlier article examined how the S&P 500’s push toward 8,000 was being tested by a tougher mix of elevated Treasury yields, higher oil prices, and political uncertainty, even as third-quarter earnings expectations stayed strong. It also highlighted growing concerns about market concentration in a handful of AI-driven megacaps and weakening breadth, which raise the bar for results this earnings season. The piece noted that higher yields were pressuring rate-sensitive areas and prompting some strategists to reconsider sector positioning.

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