Wendy's shares surge 15% after Trian offers $7.35 per share in cash

Wendy's stock jumped 15.1% to close at $7.09 on Wednesday after Trian Fund Management proposed to buy the restaurant chain for $7.35 per share in cash. The investment firm is led by Nelson Peltz. The move provided a strong tailwind for the broader market on a day when many investors were holding steady in anticipation of a Federal Reserve announcement.

The S&P 500 index rose 0.2% during Wednesday's trading, bringing it within 1% of the all-time high established earlier this month. The Dow Jones Industrial Average added 149 points, or 0.3%, as of 12:46 p.m. Eastern time. The Nasdaq composite remained mostly flat. Market attention turned to the Federal Reserve, which is scheduled to announce its decision on interest rates in the afternoon.

The Federal Reserve raised its main interest rate in September for the first time in three years to combat high inflation. Most Wall Street analysts expect the bank to keep the federal funds rate unchanged at this meeting. The primary question for investors is whether the central bank will signal future policy moves. Fed Chairman Kevin Warsh has stated that he wants the bank to provide fewer indications about its future actions.

Corporate earnings provided mixed results for the day. GE HealthCare Technologies shares rose 7.2% after the company reported summer profits and revenue that exceeded analyst expectations. The firm also raised its full-year forecasts. Etsy stock climbed 5.3% after its quarterly profit beat forecasts. CEO Kruti Patel Goyal noted that the platform saw growth in active buyers for the first time in two years.

In the artificial intelligence sector, Micron Technology rose 4.7% and was the largest contributor to the S&P 500's gain. The memory chip maker followed a similar move by South Korea's SK Hynix, which surged 10.9% in Seoul after reporting strong profits. SK Hynix stated it expects demand to outpace supply through 2030.

Not all tech stocks performed well. Boston Scientific fell 5% after giving a profit forecast for the current quarter that missed analyst estimates, despite a milder drop in previous quarter profits than expected. Robinhood Markets dropped 4.2% after reporting weaker profit and revenue than analysts predicted.

In the bond market, the yield on the 10-year Treasury rose to 5.03% from 4.99% late Tuesday. The increase was driven by rising oil prices as uncertainty persists regarding the Middle East conflict. Brent crude, the international benchmark, climbed 2.7% to $112.39 per barrel. The yield remains near the high end of its range since it jumped from 3.97% following the war with Iran.