Markets

Stocks were under pressure last week as corporate earnings results, rising oil prices, and concerns about AI valuations unsettled investors.

The Standard & Poor’s 500 Index lost 1.95 percent, while the Nasdaq Composite Index declined 4.48 percent. By contrast, the Dow Jones Industrial Average gained 0.67 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.96 percent.¹ ²

Tough Week for Tech

Markets traded in a tight range over the first two days of the week as investors awaited a slew of third-quarter corporate earnings results, primarily from major financial services companies.

The first batch of earnings announcements arrived on Tuesday, with mostly strong results. However, elevated investor expectations kept markets from moving significantly.³

By midweek, investors appeared to rotate out of AI-related stocks as they digested a hotter-than-expected retail inflation report. These two factors shifted sentiment, sending stocks lower. However, the Dow Jones Industrial Average proved more defensive, ending the session essentially flat.⁴

On Thursday, AI stocks came under pressure again as investors appeared to favor more value-oriented companies.⁵

As the week concluded, oil prices rose to their highest level since May, while sellers continued to target AI- and technology-related stocks. The Nasdaq found some support near the close but still recorded its worst week since June.⁶

Source: YCharts.com, October 17, 2026. Weekly performance is measured from Monday, October 12, through Friday, October 16. TR = total return for the index, which includes dividends and other cash distributions during the period. Treasury note yields are expressed in basis points.

Eyes on Bonds—Mind Your Eyes

Fresh retail and wholesale inflation reports were released last week. Both came in hotter than expected, putting the spotlight on the Federal Reserve’s late-October meeting.

The Consumer Price Index report, released Wednesday, showed that inflation rose 3.7 percent in September, exceeding economists’ expectations of 3.6 percent.

Thursday’s Producer Price Index report showed that wholesale inflation reached 6.6 percent year over year, its highest level in four years.

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