South Korean semiconductor maker SK Hynix reported record third-quarter revenue of 104.62 trillion won and operating profit of 83.33 trillion won. Operating profit increased approximately 632% from a year earlier as demand for advanced memory chips used in AI computing systems supported the business.

The company also announced plans to return around 100 trillion won to shareholders during 2026 through dividends and share repurchases. The results gave investors another reason to remain positive on semiconductor companies benefiting from AI infrastructure spending.

SK Hynix shares rose around 7% to 9% in early trading, while Samsung Electronics gained approximately 8.5%. South Korea’s KOSPI climbed more than 5%. Japan’s Nikkei 225 advanced around 1.3%, and Taiwan’s Taiex gained approximately 1.8%. These figures refer to early trading and may differ from final closing prices.

Can the AI rally continue?

The latest results suggest that demand for AI-related hardware remains strong. Memory chips are an important part of advanced computing systems, so strong earnings from major suppliers can support sentiment across the technology sector.

Still, traders should be careful about assuming the rally will continue without interruption. Investors need to see whether companies developing AI services can generate enough revenue to justify their spending on chips, data centres and other infrastructure.

For Filipino traders, global technology shares can offer useful insight into wider market sentiment, even when the main focus is on other assets. US equity futures, the dollar and gold may all respond as investors adjust their expectations for earnings and interest rates.

Alphabet and Microsoft earnings in focus

Alphabet and Microsoft were scheduled to release quarterly results after the US market closed on 28 October. Their reports could help determine whether the optimism surrounding AI hardware extends to companies investing heavily in AI services and infrastructure.

Investors will be looking at revenue growth, AI-related business performance, capital expenditure and forward guidance. Strong results could support the Nasdaq 100 and other technology shares. Weaker guidance or concerns about investment costs could lead to profit-taking.

For traders, the details behind the results may matter more than a simple earnings beat or miss.

Fed decision could move the dollar and gold

The Federal Reserve’s policy announcement is another major event for global markets. Before the decision, investors widely expected rates to remain unchanged. The central bank’s comments about inflation and the future path of interest rates may therefore have a significant influence on prices.

A hawkish message could lift US Treasury yields and strengthen the dollar, potentially weighing on gold and some technology stocks. A dovish message could support risk appetite, although gold and equities will still respond to the actual movement in yields and the dollar.

Filipino traders should also keep the USD/PHP exchange rate in view. Changes in US interest-rate expectations can influence dollar demand and currency-market sentiment, although the peso also responds to domestic economic conditions, capital flows and local monetary policy.

Gold remains worth monitoring for traders who follow precious metals, while oil may react to changes in global growth expectations. However, crude prices are also driven by supply decisions, inventories and geopolitical developments, so the equity rally alone is not a reliable signal for oil.

Key Market Impact

  • Asian stocks: Strong semiconductor earnings have supported regional equities.
  • Nasdaq 100: Alphabet and Microsoft results may determine whether AI optimism broadens.
  • USD/PHP: Fed guidance could influence dollar demand and peso sentiment.
  • Gold: Watch the dollar and US Treasury yields for confirmation of the next move.
  • Oil: Track global demand expectations alongside supply and geopolitical developments.

Trader Insight

The main takeaway is that earnings and interest rates are creating two separate catalysts for the market. SK Hynix has strengthened the case for continued AI-related demand, but the upcoming US technology results will show whether that strength extends across the sector.

For traders in the Philippines, it is worth watching USD/PHP alongside US market movements rather than relying on the dollar’s global direction alone. Domestic factors can influence the peso, even when the Fed is the main international event.

Gold traders should monitor Treasury yields and the dollar after the announcement. Equity traders, meanwhile, should check whether the initial reaction holds after the market has had time to assess the Fed’s message and company guidance.

There is no need to chase the first move. Waiting for clearer direction and using sensible risk limits can help manage volatility around major announcements.

What to Watch Next

  • The Fed’s 28 October policy announcement and guidance.
  • Alphabet and Microsoft earnings, especially AI revenue and investment plans.
  • Follow-through in South Korean and other Asian semiconductor stocks.
  • USD/PHP and US Treasury yields after the Fed announcement.
  • Gold and oil price movements, including their separate fundamental drivers.