Federal Reserve Begins Policy Meeting as Israel Holds Election

The Federal Reserve System began a two-day policy meeting on October 27, 2026, to determine borrowing costs. The central bank is facing conflicting economic signals, with strong GDP and corporate profits contrasting against high costs for small businesses and lower-income workers. Market participants are looking for a decision that curbs inflation without damaging non-AI economic sectors.

Simultaneously, Israel held a national election serving as a referendum on Prime Minister Benjamin Netanyahu. High voter turnout marked a tight race that will determine the political future of the prime minister and may impact his ongoing legal proceedings regarding bribery and fraud charges.

In the business sector, tech stocks rose in anticipation of earnings reports from Amazon, Microsoft, and Alphabet. Conversely, Boeing shares dropped more than 10% after the company reduced its full-year delivery targets for 737 MAX aircraft.