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Morning briefing · Wednesday, October 28, 2026

Fed decision and Microsoft, Alphabet earnings in focus after Bank of Canada hike

Published Oct 28, 12:40 PM ET

What matters today

  1. Traders are focused on today's Federal Reserve (FOMC) rate decision, which can move stocks, bonds and the dollar.
  2. Microsoft, Alphabet and Ford report earnings after the close, a key test for the recent AI-led tech rally.
  3. The Bank of Canada raised its policy rate by 25 basis points to 2.5%, joining a wave of hawkish central bank moves.
  4. Oil remains sensitive to US-Iran talks, with Iran's response to a new draft deal expected by the end of the week.
  5. The US goods trade deficit widened more than expected in September, at -134.9 billion versus -130.2 billion forecast.

Overnight

Inflation was the overnight theme. Australia's core (trimmed mean) inflation rose to 3.7% year over year versus 3.6% expected, the RBA sounded hawkish, and New Zealand's central bank surprised with a hold while signaling more hikes are likely. The Bank of Canada then raised its policy rate to 2.5%, and the UK budget cut growth forecasts while keeping £15 billion of fiscal headroom, or buffer against its borrowing rules. The US 10-year Treasury yield last stood at 4.99%, just below 5.0% the prior day.

Top headlines

  • Bank of Canada lifts its overnight rate target by 25 basis points to 2.5%.Bank of Canada ↗
  • Microsoft reports after the close, disclosing Azure revenue in dollars for the first time amid heavy AI spending.CNBC Top News ↗
  • Alphabet posts third-quarter results after the bell as investors look for reassurance on AI.CNBC Top News ↗
  • US advance goods trade gap for September came in at -134.9 billion, wider than the -130.2 billion expected.ForexLive ↗
  • Qatari mediators gave Iran a new draft US-Iran deal; Tehran's reply is expected by week's end.ForexLive ↗
  • Australia's September trimmed mean inflation reached 3.7% year over year, above the 3.6% forecast.ForexLive ↗
  • UK budget trims near-term growth forecasts but leaves £15 billion of headroom under fiscal rules.ForexLive ↗
  • Wendy's shares climb 15% after Nelson Peltz's Trian offers $1.4 billion for the burger chain.CNBC Top News ↗