Fed Decision Looms as Wendy's Shares Jump 15% on $7.35 Takeover Bid

Wendy's shares surged 15.5% to $7.09 on Wednesday after Trian Fund Management, the investment firm run by Nelson Peltz, offered to buy the restaurant chain for $7.35 per share in cash. The move stands out in a trading session defined by caution, as U.S. stocks drifted ahead of the Federal Reserve's afternoon announcement on interest rates.

The S&P 500 rose 0.2% in the mid-morning, closing in within 1% of its all-time high set earlier this month. The Dow Jones Industrial Average climbed 176 points, or 0.3%, by 11:45 a.m. Eastern time, while the Nasdaq composite remained virtually unchanged. The market is holding steady while waiting for the Fed to clarify its stance after raising its main interest rate last month for the first time in three years.

Wall Street largely expects the Fed to leave the federal funds rate unchanged at this meeting. The primary focus is on whether the central bank will signal future moves. Fed Chairman Kevin Warsh has maintained a stance of providing fewer indications about future actions since taking office, adding a layer of uncertainty to the decision.

Corporate earnings provided the day's most distinct movers. GE HealthCare Technologies jumped 8% after beating analyst expectations for profit and revenue in the third quarter. The company also raised its full-year financial forecasts. Etsy climbed 3.9% as its quarterly profit exceeded forecasts, with CEO Kruti Patel Goyal noting that active buyers grew from prior-year levels for the first time in two years.

The artificial intelligence sector showed resilience after recent volatility. Micron Technology rose 4.7%, becoming the strongest contributor to the S&P 500's movement. This gain followed a 10.9% surge for South Korea's SK Hynix in Seoul, where the memory chip maker reported strong demand driven by AI usage. The company expects demand to outpace supply through 2030.

Other tech names faced mixed results. Robinhood Markets fell 3.3% after reporting profit and revenue that missed analyst expectations. Boston Scientific dropped 6.6% despite a smaller-than-expected decline in profit, as its forecast for the current quarter came in below estimates. These results highlight the divergence in performance among major technology and healthcare firms during the earnings season.

In the bond market, the yield on the 10-year Treasury rose to 5.02% from 4.99% late Tuesday. This level is near the top of its recent range, which expanded after the war with Iran pushed oil prices and inflation concerns higher. Brent crude oil prices climbed 2.3% to $111.96 per barrel, reflecting continued uncertainty in the Middle East. South Korea's Kospi index jumped 6.6% following SK Hynix's report, while Japan's Nikkei 225 rose 1.1%.