US EQUITY OPEN: Indices rangebound ahead of FOMC and major earnings

OPEN: US indices initially opened in the green, albeit in contained territory, as stateside risk events await with FOMC, and earnings from GOOGL and MSFT the highlights. Although, there has been a deluge of US earnings. However, since the open there has been some pressure in stocks. Sectors are mixed with Health and Communications sitting top of the pile, with the former supported by a strong GEHC report, and the latter by OpenAI planning to acquire AI chips from GOOGL. Moreover, supporting the memory space is a stellar report from SK Hynix, who surged in overnight trade, and continue the gains in their US listing.

The Dollar Index is flat with mixed performance against G10 FX peers, but the Kiwi is the distinct laggard following the surprise RBNZ hold overnight. In more recent trade, the Loonie saw little move after the BoC hiked rates by 25bps, as expected, while noting further hikes may be needed, but they have agreed to proceed carefully. Finally in FX, the Pound was rangebound during, and after, the UK budget. WTI and Brent are firmer by c. USD 2/bbl, amid with conflicting reports regarding a new proposal to end US-Iran conflict; latest reports suggested that Qatar has not presented a new proposal to end hostilities between Iran and the US. Treasuries and precious metals are lower as the aforementioned risk events await.

• OpenAI plans to purchase AI chips from Google (GOOG).
• Trian offering to buy Wendy's (WEN) for $1.4bln or $7.35/shr in cash; note, WEN closed Tues. at $6.14/shr.

• SK Hynix (SKHY): EPS & rev. topped supported by strong AI-driven memory demand, higher chip prices & substantial shareholder return plan
• NXP Semiconductors (NXPI): Next Q outlook underwhelmed investors
• Enphase Energy (ENPH): Headline metrics missed w/ dismal next Q rev. guidance
• Amphenol (APH): Top & bottom line beat w/ strong Q4 view
• Robinhood Markets (HOOD): Rev. marginally light & transaction-based rev. fell short
• PPG Industries (PPG): EPS, rev. beat & raised midpoint of FY profit view
• Vertiv (VRT): Stellar Q report & FY outlook
• GE Vernova (GEV): Q nos. beat Wall St. exp. alongside lifting FY numbers
• GE HealthCare (GEHC): Solid report as major metrics impressed & lifted 2026 outlook
• Boston Scientific (BSX): Weak next Q view & cut FY figures
• Etsy (ETSY): EPS & rev. surpassed Wall St. exp.
• Visa (V): Higher-than-exp. client incentives & potentially underwhelming EPS outlook overshadowed stronger-than-exp. results

The session fits the standard template for an FOMC-day open: indices pinned in tight ranges through the morning, breadth mixed, and participation thinning as the afternoon approaches, with the genuine price discovery deferred to the statement and, more reliably, the press conference. The historical pattern is for an initial algorithmic swing on the statement language that frequently retraces once the Chair speaks, so the early move has tended to be a poor guide to the close. The clustering of mega-cap earnings alongside the decision compounds this: heavy index weights reporting into a policy event has previously produced outsized single-stock dispersion under a quiet headline index, and the AI-capex read-through from the GOOGL and MSFT prints is the kind of cross-sector transmission that has dominated comparable sessions. On the central bank periphery, the RBNZ surprise hold against expectations is the sort of divergence that leaves the laggard currency offered on rallies until positioning cleans up, while the BoC's expected hike paired with cautious guidance is the classic hawkish-hold sequencing that historically caps the currency's follow-through. The crude bid on conflicting Iran headlines is a familiar pattern where the second wire matters more than the first, and firmer oil into a Fed decision adds a complication the doves on the committee will note. The tells from here are the dot and language shifts at the statement, the tone of the presser, and whether the post-earnings reaction in the mega-caps holds into the close rather than fading with the statement chop.