--- title: "The Fed Holds Interest Rates in a 10–2 Vote. Here's What This Means for Artificial Intelligence (AI) Stocks." type: "News" locale: "en" url: "https://longbridge.com/en/news/303590077.md" description: "The Federal Reserve held interest rates steady at 3.75%-4% in a 10-2 vote, with two members dissenting. The S&P 500 saw modest gains, while AI and semiconductor stocks rose as investors welcomed the pause. Chair Kevin Warsh signaled future hikes are likely, describing the decision as a 'hawkish skip.' CoreWeave jumped 5.6%, reflecting market relief, though CME FedWatch indicates a 78% probability of a December rate increase." datetime: "2026-10-29T14:28:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/303590077.md) - [en](https://longbridge.com/en/news/303590077.md) - [zh-HK](https://longbridge.com/zh-HK/news/303590077.md) generator: "portal-rs" --- # The Fed Holds Interest Rates in a 10–2 Vote. Here's What This Means for Artificial Intelligence (AI) Stocks. Fed decision days often spark a major swing in the **S&P 500** (SNPINDEX:^SPX), as interest rates play a big role in stock valuations. However, Wednesday's announcement, which held the Fed funds rate steady at 3.75%-4%, didn't do much to move markets. The S&P 500 briefly jumped 30 points or 0.4% when Fed Chair Kevin Warsh took the podium around 2:30 ET. By the end of his press conference, the index had given up those gains, though it moved modestly higher before the closing bell. Also notable about the decision was that it was not unanimous, unlike most Fed rate decisions. Ten members of the board voted to raise rates, while Lisa Cook and Beth Hammack voted to raise rates by a quarter of a percentage point. Hammack is a noted Fed hawk who has voted against raising rates before, while this was Cook's first time voting in opposition. Those two members didn't explain their votes, and this session was without the summary of economic projections, or "dot plot" that the central bankers provide to show their long-term view, so investors got little insight into their opinions. The Fed funds rate, which is the benchmark rate for the economy, is especially meaningful to the AI sector, where some AI infrastructure stocks have tumbled in response to rising interest rates. ![Marble facade of the Federal Reserve building with engraved name and ornate architectural details](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2Nkbi5jb250ZW50LmZvb2xjZG4uY29tL2ltYWdlcy8xdW1uOXFlaC9wcm9kdWN0aW9uL2I0ZGU1ZmU1OWEwNmM1YWRlZTkyYTI0NWE0MTRiZmI0Mjk4NzViNjQtMjEyMHgxNDE0LmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## What the Fed's vote means for AI stocks Chip stock investors interpreted the news favorably as the **VanEck Semiconductor ETF** gained when Warsh began the conference and finished up 1.7%, well ahead of the S&P 500's gain of 0.3%. The Fed was widely expected to hold rates steady, though a month ago, Fed futures indicated a more than 50% chance of a rate hike. Tech stocks and growth stocks tend to be sensitive to interest rates because more of their earnings occur further in the future than those of the average stock, and higher interest rates raise the discount rate in the discounted cash flow analysis, making distant earnings worth less. AI infrastructure stocks are acutely sensitive to interest rates right now, because many of them are borrowing tens of billions of dollars to fund the new data center build-outs. **CoreWeave** (CRWV -3.50%), the leading neocloud stock, has become the bellwether for these swings, and it jumped 5.6% in Wednesday's regular session, showing investors were pleased with the Fed's decision. Still, investors in CoreWeave and other neocloud stocks will want to pay close attention to Fed decisions and, more broadly, interest rates in the coming months. ## CRWV - CoreWeave $61.69-$2.24 (-3.50%) NASDAQ · As of 10:08 AM ET 10/29/26 Premium Feature Moneyball Superscore78/100 ### Key data points Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$35.26B Day's range$60.11 - $62.36 52wk range$51.24 - $138.36 Volume10M Avg volume38.3M Gross margin24.39% ## Where the Fed goes from here Warsh has played it close to the vest in his press conferences, but he did make clear that future rate hikes were likely. Warsh called the decision a "hawkish skip," implying the Fed will raise rates in the future, and he described the economy as strong, which also opens the door for future hikes. According to the CME FedWatch tool, investors now see a 78% chance of a rate hike at the December meeting and expect the Fed funds rate to be 4.5%-4.75% or higher a year from now, though the long-term forecast can change a lot between now and then. For AI stocks, investors can breathe a sigh of relief at the pause, but this storyline is far from over. ### Related Stocks - [CRWV.US](https://longbridge.com/en/quote/CRWV.US.md) - [CORD.US](https://longbridge.com/en/quote/CORD.US.md) - [CRWG.US](https://longbridge.com/en/quote/CRWG.US.md) - [CRWU.US](https://longbridge.com/en/quote/CRWU.US.md) - [CRWX.US](https://longbridge.com/en/quote/CRWX.US.md) - [CWVX.US](https://longbridge.com/en/quote/CWVX.US.md) - [CWY.US](https://longbridge.com/en/quote/CWY.US.md) - [IVV.US](https://longbridge.com/en/quote/IVV.US.md) - [SDS.US](https://longbridge.com/en/quote/SDS.US.md) - [SH.US](https://longbridge.com/en/quote/SH.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SPDN.US](https://longbridge.com/en/quote/SPDN.US.md) - [SPLG.US](https://longbridge.com/en/quote/SPLG.US.md) - [SPUU.US](https://longbridge.com/en/quote/SPUU.US.md) - [SPXL.US](https://longbridge.com/en/quote/SPXL.US.md) - [SPXS.US](https://longbridge.com/en/quote/SPXS.US.md) - [SPXU.US](https://longbridge.com/en/quote/SPXU.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [SSO.US](https://longbridge.com/en/quote/SSO.US.md) - [UPRO.US](https://longbridge.com/en/quote/UPRO.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) ## Related News & Research - [CoreWeave AI Growth Comes With More Than $35 Billion in Debt](https://longbridge.com/en/news/303108283.md) - [Kiwoom Securities offers KRW 26.61 billion in equity-linked bonds](https://longbridge.com/en/news/303479075.md) - [CoreWeave Adds Global AI Capacity as Cramer Questions Whether Rally Can Hold](https://longbridge.com/en/news/303237275.md) - [A Tough-Talking Fed Failed to Impress the Markets. What's Next?](https://longbridge.com/en/news/303525021.md) - [The Great Semiconductor Washout: What Wall Street Is Missing](https://longbridge.com/en/news/303265392.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**