What Happened in the Markets Last Week

Week ended Friday, October 30th, 2026   |   Prepared Monday, November 2nd, 2026

The Short Version

Market performance was uneven last week. An index of smaller-company stocks rose, while the major large-company indexes fell as weakness in several large technology companies weighed on them. The Federal Reserve left interest rates unchanged, oil stayed above $100 a barrel, and this week brings the midterm elections on Tuesday and the monthly jobs report on Friday.

The Numbers

Index Friday close (Oct. 30) Weekly price change excluding dividends

S&P 500 7,580.07 -0.57%

Dow Jones Industrial Average 51,770.31 -0.85%

Nasdaq Composite 25,437.00 -2.00%

Russell 2000 (smaller companies) 2,811.84 +1.29%

Closing levels as reported by the Associated Press for October 23 and October 30, 2026. Weekly changes calculated from those closing levels. Index figures do not reflect fees or expenses, and an index cannot be invested in directly.

What Happened With Stocks

The first half of the week was calm, and stocks rose Monday through Wednesday. That changed late in the week, when several of the largest technology companies reported quarterly results. Investors focused less on how much these companies are earning and more on how much they are spending to build artificial intelligence (AI) systems, and how long it may take for that spending to pay off. One portfolio manager quoted by the Associated Press described the AI trade as entering a "show me" phase.

Friday was the S&P 500’s worst day since June and closed out its third straight losing week, according to the Associated Press.

What may be more telling is what happened beneath the surface. Nine of the eleven Select Sector SPDR ETFs, which track the major stock market sectors, rose for the week, led by health care, materials, and utilities, according to Portfolio Terminal. A version of the S&P 500 that gives every company the same weight rose about 0.8% for the week, per the same source. In plain terms, market performance was uneven, and weakness in several large technology companies weighed on the major indexes.

Why it matters: When a handful of companies make up a big share of an index, their moves can shape the headline number more than what is happening across the rest of the market. Looking past the headline can give a fuller picture of how markets are actually behaving.

A quick look at October

For the full month, the S&P 500 fell 0.93% and the Nasdaq fell 5.30%, its weakest month since March 2025, according to Portfolio Terminal’s November 1 review (measured from the September 30 close to the October 30 close, excluding dividends).

The Federal Reserve

On Wednesday, the Fed kept its benchmark interest rate in a range of 3.75% to 4.00%, according to the Federal Reserve’s October 28 statement. The vote was 10 to 2, and both officials who disagreed preferred a rate increase. For context, the Fed raised rates in September for the first time since July 2023.

Why it matters: The two dissents suggest some Fed officials remain concerned about inflation. One possible reading is that the Fed is keeping the door open to another increase if prices continue rising faster than its 2% goal. Its next scheduled decision is December 9.

The Economy

Real GDP, the inflation-adjusted measure of everything the U.S. economy produces, increased at a seasonally adjusted annualized rate of 3.4% in the third quarter, up from 2.2% in the second quarter, according to the Bureau of Economic Analysis advance estimate released October 29. The same week, the Fed’s preferred inflation measure (the PCE price index) showed prices up 3.6% from a year earlier in September, or 3.1% excluding food and energy.

Why it matters: The economy is still growing at a healthy pace, but prices are rising faster than the Fed would like. That combination is part of why interest rates have stayed where they are.

Bonds and Interest Rates

The yield on the 10-year U.S. Treasury ended the week near 4.93%, slightly lower than the prior Friday, based on closing data compiled by Portfolio Terminal. For a given fixed-rate bond, its price and yield generally move in opposite directions. One possible explanation for the dip is that some investors shifted toward bonds as technology stocks fell.

Energy and the World

Oil stayed above $100 per barrel as tensions between the U.S. and Iran continued and global supplies remained tight, according to LPL Research. December Brent crude futures, a global benchmark contract, settled at $114.88 a barrel on October 29, as reported by The Nation (Thailand). Shell’s chief executive said that day that high oil prices no longer appear temporary because global inventories are very low, according to Bloomberg.

Gold had its weakest October in 18 years, according to LPL Research.

Why it matters: Energy costs show up in what households pay for gas, heating, travel, and many everyday goods. Elevated oil prices are one reason inflation has been slow to come down.

Election Week: What to Know Heading Into Tuesday

The 2026 midterm elections take place tomorrow, Tuesday, November 3. The results are not yet known, and some close races may take several days to call. We plan to share a follow-up once the outcomes are clearer.

On the ballot are all 435 seats in the House of Representatives, and 35 Senate seats (33 regular seats plus special elections in Florida and Ohio), according to Ballotpedia, along with 36 governorships, according to Schwab Asset Management. The newly elected Congress takes office on January 3, 2027, so any change in control would not take effect right away. U.S. stock and bond markets are scheduled to be open as usual on Election Day.

Why it matters for markets: Control of Congress can influence which policies on spending, taxes, regulation, and energy are likely to move forward over the final two years of the current presidential term. In general, a Congress split between the two parties may make major new legislation harder to pass, while one-party control of both chambers may make it easier. An election outcome is one factor among many, alongside interest rates, inflation, energy prices, and company earnings.

If the headlines feel loud this week, it can be a reasonable moment to check whether your plan still fits your goals and your timeline, rather than reacting to a single day’s news.

The Week Ahead: What’s Coming November 2 to 6

This is one of the busiest weeks of the fall. Alongside the election, it brings a full slate of reports on jobs and the economy, interest rate decisions from two major central banks overseas, and quarterly results from a number of large companies.

Monday, November 2

• Manufacturing survey (10:00 a.m. ET): The Institute for Supply Management’s October reading on factory activity. A reading above 50 signals the manufacturing sector is growing. The September reading was 54.5, according to Yardeni Research.

• Company earnings: Several large companies, including one of the biggest technology names, report after the market closes.

Tuesday, November 3

• Election Day: Markets are open regular hours. Results will come in Tuesday night and possibly over several days.

• Job openings (10:00 a.m. ET): The government’s September count of open jobs, a measure of how much employers are still looking to hire.

• Australia: The Reserve Bank of Australia announces its interest rate decision.

Wednesday, November 4

• Private payrolls (8:15 a.m. ET): ADP’s October estimate of hiring at private companies. This is a separate private-sector estimate, not the government’s figure, and its results may differ substantially from Friday’s official report.

• Services survey (10:00 a.m. ET): The Institute for Supply Management’s October reading on the services side of the economy, which covers most U.S. jobs.

• U.S. Treasury borrowing plans: The Treasury’s quarterly announcement of how much it plans to borrow, which can influence bond yields.

Thursday, November 5

• Weekly jobless claims and productivity (8:30 a.m. ET): How many people filed for unemployment benefits, plus an early third-quarter read on worker productivity and labor costs.

• United Kingdom: The Bank of England announces its interest rate decision.

Friday, November 6

• October jobs report (8:30 a.m. ET): The headline event of the week. For context, employers added 29,000 jobs in September, according to Yardeni Research.

• Consumer sentiment (10:00 a.m. ET): The University of Michigan’s early November reading on how households feel about their finances and the economy.

Also worth knowing

• Six Federal Reserve officials are scheduled to speak during the week, according to Yardeni Research. Their comments may offer clues ahead of the Fed’s December 9 decision.

Why it matters: The jobs data and the election land within three days of each other. Jobs data can shape expectations for interest rates, and election results can shape expectations for policy. Election results and economic releases may contribute to volatility; market reactions are uncertain.

The Bottom Line

Last week’s headlines focused on weakness in several large technology companies, while performance across the broader market was uneven. This week brings an election, a jobs report, and continued uncertainty in energy markets. Being capable isn’t the same as being intentional, and weeks like this are where having a plan built around your own life can make the noise easier to sit through.

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