Wendy's shares surge on cash offer

Wendy's stock jumped 14.6 percent to close at $7.04 on Wednesday. The move followed an offer from Trian Fund Management to buy the restaurant chain for $7.35 per share in cash. The fund is run by investor Nelson Peltz. The surge was the largest gain among major U.S. stocks on the day.

The rally occurred after the Federal Reserve decided to hold its main interest rate steady. The central bank last month raised rates for the first time in three years to fight inflation. Two officials wanted to hike rates at the recent meeting, but their peers voted to keep them unchanged. Fed Chairman Kevin Warsh said the bank wants to see how current conditions play out before making its next move.

Warsh noted that loan rates for businesses have already climbed. He said lenders and investors have become more discerning. He described the prevailing judgment among officials as monetary medicine starting to work. He added that economic growth and lower inflation align with the Fed's two primary goals.

U.S. equity markets remained relatively stable following the announcement. The S&P 500 rose 0.3 percent. The Dow Jones Industrial Average added 0.2 percent. The Nasdaq composite also rose 0.3 percent. Traders pared back expectations for future rate hikes. Data from CME Group shows bets for increases by next summer have decreased.

The bond market showed more volatility. The two-year Treasury yield initially jumped above 4.79 percent after the Fed's decision. It later dropped to 4.69 percent as traders adjusted their outlook. The 10-year Treasury yield rose to 5.04 percent from 4.99 percent late Tuesday. Higher rates can control inflation but may also slow economic growth.

Technology stocks held firm despite earlier worries about borrowing costs for AI data centers. Micron Technology rose 5.4 percent and was the strongest force lifting the S&P 500. South Korea's SK Hynix soared 10.9 percent in Seoul after reporting strong profits. The memory chip maker expects AI demand to outpace supply through 2030. This helped push South Korea's Kospi index up 6.6 percent.

Other companies reported mixed results. GE HealthCare Technologies jumped 6.4 percent after beating profit and revenue expectations. It also raised its full-year forecasts. Etsy climbed 6 percent as CEO Kruti Patel Goyal reported growth in active buyers for the first time in two years. Boston Scientific fell 4.1 percent and Robinhood Markets sank 3.9 percent, both citing weaker results than analysts expected.