Weekly Market Performance — October 30, 2026

LPL Research provides its Weekly Market Performance for the week of October 26, 2026. Stocks dropped after a bounce attempt in AI shares faded under earnings-driven pressure. Misses from Alphabet and Amazon, along with a weak outlook from Intel, revived worries around the AI trade. Still, the selling was fairly narrow as a rotation beneath the surface padded indexes. Overseas, European stocks posted a healthy weekly gain, while tech-heavy Asian markets ended lower. In fixed income, a flight to safety pushed Treasuries higher for a fourth straight week. In commodities, oil stayed above $100 per barrel on U.S.-Iran tensions and tight supplies, while gold capped weekly and monthly losses. 

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 10/30/26 @3:21 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Major averages ended lower in the final week of October after an early-week rebound in artificial intelligence (AI) shares gave way to earnings-driven pressure. Three AI hyperscalers delivered reports Wednesday and Thursday with Alphabet (GOOG/L) delivering a surprise earnings miss, followed just 24 hours later by another miss from Amazon (AMZN). A deceleration in Search for the Google-parent company and cooler e-commerce results paired with cash flow concerns from AMZN overshadowed positive AI demand and spending takeaways, as well as a solid report from Microsoft (MSFT). Growth for Google Cloud and AWS was strong, and demand continued to outpace capacity, but concerns over AI spending versus monetization sparked a selloff in tech shares, dragging indexes lower into month's end. A weak outlook from Intel (INTC) also weighed on the AI trade.

Beneath the headline weakness, 80% of S&P 500 names advanced Thursday as investors rotated to defensive, cyclical, and small cap companies, and while selling accelerated Friday just under 50% of the index still rose. The sharp AI-led sell-off to end the week left the S&P 500 on track for a moderate monthly loss and roughly 3.5% below all-time highs. The Nasdaq faced more downside pressure in October, shedding roughly 6%.

International Equities: Corporate earnings and lower relative technology exposure helped European equities weather renewed weakness in the AI trade. The European STOXX 600 posted a healthy weekly gain and held on to a monthly advance as broadly strong earnings overshadowed some mixed takeaways from financials. Among earnings highlights, Shell’s strong profits and expanded buyback plans supported shares, while Adidas advanced on strong sales and healthcare names AstraZeneca and Sanofi delivered upbeat reports. Geographically, France outperformed as yields fell and dip buyers waded in after roughly two-months of selling, with student funding and reforms aimed to curb protests offsetting a 13-year low in consumer confidence.

In Asia-Pacific markets, technology shares continued to drive swings across the region, with early strength giving way to downside pressure to end the region's worst month since March. Early in the week, robust SK Hynix (SKHY) results and a $75 billion shareholder-return plan powered South Korea's best day in three months and broader tech gains. However, momentum faded as mixed U.S. earnings and Samsung’s net profit miss pressured tech names. Japan's Nikkei held on to a weekly advance after outperforming on well received earnings from Advantest, but pared gains Friday amid technology selling and a hawkish-leaning Bank of Japan (BOJ) hold. The less AI-exposed markets of Australia and India outperformed, while Hong Kong also rose after benefitting from rotation dynamics. South Korea's mid-week spike kept it above the weekly flatline, while mainland China fell. 

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, measured by the Bloomberg U.S. Aggregate Index traded higher this week, extending its recent string of weekly gains to four in a row. The bulk of this week's gains coincided with the selloff in technology shares on Thursday, with the move triggering a clear flight to safety that pushed Treasury yields lower, putting the 10-year on track for its largest monthly decline in nearly three years. This move pointed to bonds reclaiming their traditional hedging role despite inflation remaining well above target and the Fed holding rates steady at this Wednesday's monetary policy meeting.  

The Fed's 10-2 hold looked more like a pause in rate hikes more than a stop, consistent with a higher-for-longer backdrop that continues to support short and intermediate Treasury yields in the range we have favored. In other bond market news, the Treasury Department sold $183 billion of 2-, 5- and 7-year notes without any real stress. Domestic buyers are filling the gap left by softer foreign demand, which works at today's yields, but it reinforces our view that the Treasury market has to clear at prices that compensate investors, not prices set by a price-insensitive buyer. 

Broadly, this week signaled that despite a busy week of Fed uncertainty, oil prices still comfortably above $100 a barrel, elevated Treasury supply, and continued AI-related issuance, fixed income markets have remained resilient. More importantly, bonds are once again showing their value as portfolio ballast when risk assets come under pressure. With yields still attractive, investors do not need a major decline in rates to generate compelling returns.  

Commodities and Currencies: The broader commodities complex fell for a second straight week, but remained on track for a slight monthly gain. Crude futures crept higher as markets analyzed reports that Washington is prereparing for post-midterm strikes countered by remarks from President Trump that U.S.-Iran conflict will be over soon. However, recent threats to ramp kinetic activity from the White House, signals from Tehran that they will not compromise their positions on ending the war, and two separate vessel attacks lifted prices above the week-to-date flatline Friday. Low inventories and tight supplies of refined products also remained bullish factors. Elsewhere, gold prices dropped. The yellow metal briefly steadied near $4,000 per ounce before breaking lower, weighed down by a Fed leaving the door open to a December hike and rising oil prices fanning inflation worries, while also pressured by selling momentum in equities. Gold posted its second monthly loss and its worst October showing in 18 years. Silver also fell, moving into oversold territory. The U.S. dollar steadied.  

Economic Weekly Roundup

Takeaways from Wednesday's Federal Open Market Committee (FOMC) meeting: 

• The FOMC held target rates at 3.75–4.00% and the committee stated they need more data before getting comfortable in altering policy. However, two members of the committee were ready to hike now and dissented at this meeting. 
• The inflation problem is partially from strong demand and partially from supply constraints. The challenge for policy makers right now is managing the view that this short-term demand push will be appeased by a disinflationary productivity boost in the future. The problem is the productivity boost will not show up as quickly as some think. 
• One of the more interesting announcements was a change to the Fed’s meeting schedule in the next two years. The FOMC is incrementally moving to a ‘6+2’ format, eventually with six meetings focused on monetary policy and two centered on bigger economic issues. This will be introduced slowly. That means for 2027, seven scheduled rate decision meetings and one broad strategy meeting and then another step toward only six interest rate decisions and two strategy meetings in 2028. It may sound like a technical change, but fewer opportunities to adjust rates could put a little more weight on each meeting and the data leading into it. 
• And at the post-meeting press conference, Fed Chair Kevin Warsh offered a little more color on the Fed’s Productivity and Jobs Task Force, announcing a public field hearing for November 16. While he didn’t provide details on the agenda or what might come out of the hearing, he said the task forces are hard at work and that he’s encouraged by their progress. 

The Week Ahead

The following economic data is slated for the week ahead:

• Monday: Chicago Fed National Activity Index (Sep), Dallas Fed Manufacturing Activity (Oct)
• Tuesday: ADP Weekly Employment Change (Oct 10), Durable Goods Orders (Sep preliminary), Capital Goods Orders and Shipments (Sep preliminary), FHFA House Price Index (Aug), S&P Case-Shiller 20-City and U.S. Home Price Index (Aug), Conference Board Consumer Confidence report (Oct), Richmond Fed Manufacturing Index (Oct), New Home Sales (Sep), Dallas Fed Services Activity (Oct), Building Permits (Sep final)
• Wednesday: MBA Mortgage Applications (Oct 23), Advance Goods Trade Balance (Sep), Retail Inventories (Sep), Wholesale Inventories (Sep preliminary), FOMC Rate Decision (Oct 28)
• Thursday: Personal Income and Spending (Sep), Headline and Core PCE Price Index (Sep), Initial Jobless Claims (Oct 24), Continuing Claims (Oct 17), Gross Domestic Product (3Q first reading), Personal Consumption (3Q first reading)
• Friday: Employment Cost Index (3Q), MNI Chicago PMI (Oct)