NEW YORK (AP) — U.S. stocks are drifting Wednesday as the countdown ticks toward this afternoon’s announcement from the Federal Reserve on what it will do with interest rates.
The S&P 500 rose 0.2% and pulled within 1% of its all-time high, which was set earlier this month. The Dow Jones Industrial Average was up 176 points, or 0.3%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was virtually unchanged.
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FILE - Traders Joseph Stevens, left, and Robert Arciero work on the floor of the New York Stock Exchange, Monday, Feb. 2, 2026. (AP Photo/Richard Drew, file)
FILE - Trader Daniel Kryger works on the floor of the New York Stock Exchange, Monday, Feb. 2, 2026. (AP Photo/Richard Drew, File)
Employees work near the screens showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between the U.S. dollar and the South Korean won, and the Korea Securities Dealers Automated Quotations at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
A dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between the U.S. dollar and the South Korean won in a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
A dealer walks near the screen showing the Korea Composite Stock Price Index (KOSPI) in a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
The day’s highlight will likely be what the Federal Reserve says, if anything, about where interest rates are heading. The Fed raised its main interest rate last month for the first time in three years in hopes of slowing the high inflation that’s squeezing the economy and discouraging Americans.
The widespread expectation on Wall Street is that the Fed will leave the federal funds rate alone at this meeting, and the question is whether it will give hints about what may happen at later meetings. Fed Chairman Kevin Warsh, though, has been adamant since taking over the Fed about wanting it to give fewer indications about its future moves.
Wall Street cares so much about interest rates because they are one of the main levers that set prices for stocks. The other big variable is how much profit companies are making, and several companies rallied Wednesday after joining the list of those beating analysts’ expectations for the summer.
GE HealthCare Technologies jumped 8% after delivering both profit and revenue for the summer that surpassed analysts’ expectations. It also raised its forecasts for revenue growth and other financial measures for the full year.
Etsy climbed 3.9% after its profit for the latest quarter blew past analysts’ forecasts. CEO Kruti Patel Goyal said the online marketplace saw growth in active buyers from prior-year levels for the first time in two years, while its active seller base grew at its fastest rate in two years.
Stocks in the artificial-intelligence industry were also relatively solid. They’ve stabilized this week following big swings on worries that high borrowing costs caused by high interest rates will undercut the boom in AI data centers largely built with borrowed money.
AI stocks got an additional boost after a major player in the industry, South Korea’s SK Hynix, soared 10.9% in Seoul following its latest profit report. The seller of memory chips said it’s in the midst of a virtuous cycle of rising AI usage, and it expects demand to continue to outpace supply through 2030.
On Wall Street, Micron Technology rose 4.7% and was the strongest force lifting the S&P 500. It also sells memory for computers.
Outside of tech and earnings, Wendy's soared 15.5% to $7.09 after Trian Fund Management, run by investor Nelson Peltz, offered to buy the chain for $7.35 per share in cash.
That helped offset a drop for Boston Scientific, which fell 6.6% even though the seller of medical devices reported a milder drop in profit for the latest quarter than analysts expected. It gave a forecast for profit in the current quarter that fell short of analysts’ expectations.
Robinhood Markets sank 3.3% after reporting weaker profit and revenue for the latest quarter than analysts expected.
In the bond market, Treasury yields ticked higher, and the yield on the 10-year Treasury rose to 5.02% from 4.99% late Tuesday.
It’s near the high end of its range since shooting upward from 3.97% when the war with Iran sent oil prices and worries about inflation much higher. But it’s pulled back after topping 5.30% earlier this month and touching its highest level since 2002.
Rising oil prices pushed upward on Treasury yields Wednesday as uncertainty continues about what will happen in the Middle East and the global energy industry. The price for a barrel of Brent crude, the international standard, climbed 2.3% to $111.96.
In stock markets abroad, South Korea’s Kospi jumped 6.6% following SK Hynix’s leap. Japan’s Nikkei 225 rose 1.1%, while France’s CAC 40 edged down by less than 0.1%.
AP Writer Elaine Lai contributed to this report.
FILE - Traders Joseph Stevens, left, and Robert Arciero work on the floor of the New York Stock Exchange, Monday, Feb. 2, 2026. (AP Photo/Richard Drew, file)
FILE - Trader Daniel Kryger works on the floor of the New York Stock Exchange, Monday, Feb. 2, 2026. (AP Photo/Richard Drew, File)
Employees work near the screens showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between the U.S. dollar and the South Korean won, and the Korea Securities Dealers Automated Quotations at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
A dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between the U.S. dollar and the South Korean won in a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
A dealer walks near the screen showing the Korea Composite Stock Price Index (KOSPI) in a dealing room of Hana Bank in Seoul, South Korea, Wednesday, Oct. 28, 2026. (AP Photo/Lee Jin-man)
JERUSALEM (AP) — Hawkish, reserved and unpolished, Israel's former military chief has a viable chance of unseating Prime Minister Benjamin Netanyahu.
His name is Gadi Eisenkot. And while the votes from Tuesday's election are still being counted, his centrist party, Yashar, along with other opposition allies, has the clearest path to power if they can join forces with Arab-led parties, though pulling it off may prove difficult.
It has been a remarkable climb for the 66-year-old, who was raised by Moroccan-Jewish immigrants, and whose son died fighting in the latest war in Gaza. But it's also a major challenge for a man relatively untested in Israel's hardscrabble tradition of coalition building.
The commander of some of Israel's most difficult wartime battles, he is now up against Netanyahu, who has shown, time and time again, an almost uncanny ability to survive the cutthroat world of Israeli politics.
Nevertheless, Eisenkot was ecstatic and determined late Tuesday as initial exit polls suggested a big loss for Netanyahu.
“We have made history!" he bellowed from a podium in Tel Aviv.
“Millions of Israelis have had enough of the culture of lies, of failure, of division and incitement," Eisenkot said. "Tonight marks the beginning of a path that must lead to the formation of a Zionist government.”
Preliminary results from Israel’s elections commission on Wednesday have since shown the prime minister’s party pulling ahead, but without a clear majority. Eisenkot's coalition — a mix of center-right and more liberal figures — is a close second but would need to partner with Arab-led parties for an outright majority.
In Israeli politics, where higher vote counts don’t automatically translate into political victories, the ability to amass a coalition is key.
Emerging results indicated that neither Netanyahu’s nor Eisenkot’s coalition blocs would reach the 61 seats needed for a majority; local media projected 53 seats for Likud and allied parties, 48 for Yashar and allied parties, and 19 for Arab-led parties.
While Netanyahu and many members of his party, Likud, have ruled out working with minority Arab parties, Eisenkot has not.
The parties, composed mainly of Palestinian Muslims and Christians, made a historic showing at the polls in Tuesday's election. If Eisenkot can convince them to join his coalition, he could gain enough seats to form a majority in the Knesset, Israel’s parliament.
Yousef Jabareen, leader of the Joint List of Arab parties, is calling for a “true and equal” Jewish-Arab partnership to help oust Netanyahu’s government after a strong showing by Arab-led parties.
By partnering with Arab parties, Eisenkot could lose the support of more right-wing members of his coalition, endangering his bloc from the opposite flank.
In a bid to prevent such defections, his party has asked Israel’s Arab parties to publicly profess certain principles: that Israel is a Jewish and democratic state, guided by the Israeli declaration of independence; that Hamas is a terrorist organization that should be disarmed and demolished; and that ultra-Orthodox Jews and Palestinian citizens of Israel must no longer be exempt from Israel’s mandatory military draft.
“There is currently no ultra-Orthodox or Arab party that supports these four principles,” Yashar candidate Lian Polak-David said to The Associated Press on Tuesday night.
They must reach an agreement soon or risk going to another round of elections. Thousands of citizens who flew into Israel to vote in the first round might be unable to return for a second, and Arab parties would likely suffer from lower turnout, too.
“We must act swiftly. This is the imperative of the hour, and uniting our people is essential," Eisenkot said Tuesday night in Tel Aviv.
Eisenkot has halting English and comes from a working-class family. He spent four decades in Israel’s military. His 25-year-old son, Gal Meir Eisenkot, was killed in combat in Gaza.
Netanyahu is a U.S.-educated elite, marred by corruption scandals. The International Criminal Court seeks his arrest. Netanyahu’s son, Yair Netanyahu, is a podcaster who lives part time in Florida and has used the legal name “Yonatan Hun,” according to Israel’s Haaretz newspaper.
After the Hamas attacks on Israel on Oct. 7, 2023, Eisenkot took on a role as an observer in Netanyahu’s war Cabinet. That day, the militants killed 1,200 people and took 251 hostage. Israel then launched a war in Gaza that has killed over 74,000 Palestinians, according to the territory’s health ministry, which doesn’t distinguish between civilians and combatants in its count.
In June 2024, Eisenkot followed a colleague out of the Cabinet, writing in his resignation letter that Netanyahu was letting politics influence decision-making, harming Israel’s ability to achieve its war goals.
Eisenkot’s two nephews who were deployed to combat were also killed fighting in Gaza.
The personal losses raised Eisenkot’s profile among Israelis and gave him credibility as someone who, having paid the ultimate price, wouldn’t needlessly sacrifice soldiers.
Eisenkot, like others in the opposition, says Netanyahu should be held accountable for Oct. 7 and the failure to turn battlefield victories into diplomatic achievements. They support launching a state inquiry into the failures that led to the Hamas attacks that day — a probe Netanyahu has long refused.
When it comes to the country’s ultra-Orthodox population, Eisenkot has said he will not compromise on legislation mandating they also serve in the military.
Eisenkot is no dove. Like nearly all the prime minister’s rivals, Eisenkot has supported Israeli military operations in Gaza, Lebanon and Iran.
He says he wants to dial tensions down with the Palestinians in the Israeli-occupied West Bank and follow U.S. President Donald Trump’s plan for Gaza.
He supports settlements but says he would evacuate unauthorized settler outposts, which rights groups say are the primary drivers of violence against Palestinians.
While at times he has emphasized diplomacy to address Israel’s security challenges, he also is credited with formulating Israel’s so‑called Dahiyeh Doctrine, named after the area in Beirut’s southern suburbs where the Hezbollah militant group has a stronghold. It's a military strategy advocating the use of disproportionate power against any entity that fires on Israel, no matter how small or insignificant.
Gadi Eisenkot, leader of the Yashar ("Straight") party, speaks to supporters following the release of the first exit poll results in Israel's general election in Tel Aviv, Israel, Wednesday, Oct. 28, 2026. (AP Photo/Baz Ratner)
Gadi Eisenkot, leader of the Yashar ("Straight") party, speaks to supporters following the release of the first exit poll results in Israel's general election in Tel Aviv, Israel, Wednesday, Oct. 28, 2026. (AP Photo/Baz Ratner)
Gadi Eisenkot, leader of the Yashar ("Straight") party, waves to supporters following the release of the first exit poll results in Israel's general election in Tel Aviv, Israel, Wednesday, Oct. 28, 2026. (AP Photo/Baz Ratner)
