Daily Summary of Business & Economy · Final editionWednesday 28 October 2026 · UTC
Business & Economy News: 28 October 2026
Fed holds with two dissents for a hike, Bank of Canada raises rates, Brent tops $115
The US Federal Reserve kept rates at 3.75% to 4% but two policymakers voted for a hike, while the Bank of Canada raised its rate for the first time since 2023 because of worries about inflation. Oil climbed above $115 a barrel on fears that US strikes on Iran could resume. On Wall Street, stocks rose for a third straight day, and after the close Microsoft beat earnings forecasts while Alphabet missed them.
Wall Street gains for a third day as Oracle jumps 11% on long-range targets
The S&P 500 rose 0.28% to 7,743.98, the Nasdaq Composite gained 0.27% to 26,549.85 and the Dow added 0.19% to 52,475.10, the third straight gain for all three. Energy stocks led, while the 10-year Treasury yield edged up to 5.02%. Oracle rose 10.73% to $144.54 after its Investor Day forecast of at least $225 billion in fiscal 2030 revenue.
Oracle also said free cash flow would turn positive in the second half of fiscal 2028 and reach at least $30 billion in fiscal 2029.
Boston Scientific falls 6% after cutting its outlook because of a cyberattack
Boston Scientific shares closed down 5.81% at $42.44 after the medical device maker cut its fourth-quarter sales and full-year earnings guidance, citing ongoing disruption from a cyberattack. Third-quarter sales rose 1.5% and adjusted earnings were $0.73 a share, both short of its earlier guidance of 3% to 5% growth and $0.80 to $0.82.
Among other big movers, F5 fell about 19% on its fiscal 2027 outlook and an analyst downgrade, while Wingstop gained 15% after beating profit estimates.
Fed holds rates at 3.75% to 4% as Cook and Hammack vote for a hike
The Federal Open Market Committee kept the federal funds rate at 3.75% to 4%, where it has been since a quarter-point increase in September. The statement said inflation remains elevated and that more information would guide the next move. Governor Lisa Cook and Cleveland Fed President Beth Hammack both dissented in favour of a quarter-point hike.
The decision under Chair Kevin Warsh came less than a week before the US midterm elections, and markets now expect a hike in December.
Bank of Canada raises its policy rate to 2.5%, its first hike since July 2023
The Bank of Canada raised its overnight rate target by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%. The rate had been at 2.25% since a cut in October 2025, so this is the bank's first increase since July 2023 and its first move in a year. TD said the central bank sees no clear end to the Middle East conflict and is increasingly worried about inflation risks. MoneySense said more increases could follow.
Brent tops $115 on reports the US told Gulf states to prepare for Iran strikes
Brent crude futures closed up 1.3% at $115.32 a barrel and West Texas Intermediate rose 2.9% to $102.78, after reports that the US is preparing to renew strikes on Iran after the midterm elections. Iran-allied Houthi militants also said they had hit Saudi Arabia's Ras Tanura refinery with a ballistic missile. Late in the day Bloomberg reported that Brent had fallen below $114 as traders weighed new diplomatic efforts to head off the strikes.
Microsoft beats forecasts on faster Azure growth while Alphabet misses
Microsoft reported fiscal first-quarter revenue of $92.28 billion, up 19% from a year earlier, and adjusted earnings of $4.89 a share. Both beat estimates, helped by faster growth in its Azure cloud business. Its shares rose about 2% after hours. Alphabet reported third-quarter earnings of $2.12 a share against a consensus of $3.01, and revenue of $127.58 billion, slightly below the $127.97 billion expected.
TheStreet said its shares fell and its cash flows turned negative.
New Zealand's central bank unexpectedly holds rates as European stocks end flat
The Reserve Bank of New Zealand surprised markets by holding its official cash rate at 2.75% in a 4-3 vote, on the same day Australian inflation came in hotter than expected. In Europe, the Stoxx 600 closed down 0.23%, the FTSE 100 fell 0.3% and the DAX dipped 0.08%, while the CAC 40 edged up 0.07% as investors weighed company earnings ahead of the Fed.
The dollar traded near 158 yen for a fourth straight session of gains, as higher oil prices weighed on Japan's import-dependent economy ahead of a Bank of Japan meeting.
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