S&P 500 posts consecutive wins as AI chip stocks surge on Anthropic IPO news and crude oil prices retreat
The S&P 500 closed higher for a second consecutive session on October 27, 2026, as AI chip stocks surged and crude oil prices pulled back. For Canadian advisors managing US equity exposure, the session delivered positive signals ahead of a pivotal Federal Reserve rate decision.
For advisors with semiconductor-heavy positions in client portfolios, the back-to-back gains arrive at a critical juncture. The Fed begins its two-day policy meeting Tuesday, with a decision due Wednesday afternoon. The question of whether December could bring a rate hike is already shaping positioning conversations.
The S&P 500 ended the session at 7,722.60, up 0.6 percent, according to CNBC. The Nasdaq Composite closed at 26,477.81, a gain of 1.18 percent. The Dow added 15.99 points on the day, or 0.03 percent, to 52,377.57.
What drove the chip gains?
Micron Technology added nearly 3 percent on the day, while Advanced Micro Devices climbed 5 percent. Broadcom climbed approximately 4 percent.
Bank of America, Citi, Morgan Stanley, and Blackstone had jointly arranged USD63 billion in financing connected to Anthropic’s acquisition of Broadcom technology.
Anthropic, the AI company, had filed to go public on the Nasdaq the previous session. The listing would mark another significant technology debut in 2026, after SpaceX made its market debut in June.
A possible Fed rate hike before year-end is now the dominant concern for Canadian advisors. This has shaped how advisors have been assessing US equity exposure since mid-year.
“The market has these kind of periodic interludes where it gets concerned about AI spending, and then we tend to go back and tech leads us higher,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, in a statement to CNBC. “The light switch has been off for the last two weeks, and it looks like the first two days this week, the switch has been flipped up again.”
Ellerbroek added that he still sees strong conviction from data centre operators to continue growing. He warned that swings in capital markets remain the trade’s biggest vulnerability.
What does falling oil mean for advisors’ portfolios?
Crude oil prices pulled back sharply during the session. Brent crude, the global benchmark, fell 1.67 percent to finish at USD113.88 a barrel. US West Texas Intermediate settled 1.83 percent lower at USD99.90 per barrel, according to CNBC.
Diplomatic signals contributed to the move. Reports emerged that Iran’s supreme leader and a senior security official had held discussions about conditions for winding down the conflict. Traders interpreted this as a softening of near-term supply risk.
The Bank of Canada-Federal Reserve rate divergence and its implications for Canadian advisors’ clients have been a live issue throughout 2026. The BoC has held its overnight rate at 2.25 percent while the Fed has signalled possible tightening. That gap makes any renewed oil-driven inflation doubly relevant for advisors managing cross-border portfolio exposure.
Fed decision due — December now the focus
“This feels like a rare Fed meeting non-event under Warsh,” Ellerbroek told CNBC. “It feels like his communication strategy is going to result in fewer of these no-surprise meetings, but it does look like we’re going to get one here, mostly because the midterm election is next week. I assume that next meeting in December is going to be another kind of live wire.”
Adding a note of caution to the chip rally, Jonathan Krinsky, chief market technician at BTIG, said in October presentation notes that investors should consider fading the current bounce. He identified a specific pattern in the SOX semiconductor index: a 5 percent decline following an equivalent rise. This has happened only four times in three decades, each preceding a severe correction.
For advisors holding AI chip stocks with US equity exposure in client accounts, Krinsky’s historical analogy is a risk flag worth keeping in view. Wednesday’s Fed decision is widely expected to hold rates steady. Ellerbroek flagged December’s meeting as more consequential — a date worth noting for advisors tracking the rate outlook.
