SK Hynix beats forecasts as AI chip demand lifts KOSPI 6.63%

SK Hynix delivered record third-quarter earnings that beat expectations, sending its shares up 11% and South Korea's KOSPI index to a 6.63% gain, according to Token Times. The result put AI chip demand back at the centre of the market's attention and lifted Nasdaq futures in morning trading.

The broader picture was calmer. S&P 500 futures were flat after two sessions of gains left the index within touching distance of its all-time high, according to Token Times. Traders were holding position ahead of the Federal Reserve's rate decision later in the day, with the CME FedWatch index of Fed futures pricing a 91% probability that the central bank holds rates at 3.75%.

Beyond the Fed, Deutsche Bank's Jim Reid pointed to the US midterm elections as the next catalyst. October 27 has historically been the weakest point of the autumn for US stocks, a seasonal dip that is more pronounced in midterm years, he said. Once the elections pass, he described the market's path as usually "one-way traffic" upward, with the S&P 500 gaining over the following three months in 21 of the last 23 midterm years, according to the bank's Binky Chadha and Parag Thatte.

Pimco's Libby Cantrill said traders welcome the shift from political uncertainty to the guaranteed inaction of congressional gridlock. She told Token Times that a Democratic sweep and a split Congress would not differ much, since President Trump retains veto authority either way, and that both scenarios point to more oversight, more obstruction and incrementally higher spending.