What Happened in the Markets Last WeekWeek ended Friday, October 23rd, 2026 | Prepared Monday, October23rd 2026 The short versionStocks slipped for a second straight week as rising oil prices and renewed questions about the cost of financing artificial intelligence weighed on the market. Brent crude futures rose sharply after reported attacks on Saudi energy sites, and energy stocks rose while most other sectors fell. Consumer sentiment was essentially unchanged from September. This week brings one of the busiest stretches of the fall: a Federal Reserve decision, the first estimate of third-quarter economic growth, a key inflation report, and earnings from several of the largest technology companies. Stocks: a second weekly decline, with uneven resultsThe S&P 500 fell 0.5% for the week and closed Friday at 7,623.68, its second straight weekly loss, according to the Associated Press. The Nasdaq Composite dropped 0.7%, while the Dow Jones Industrial Average rose 0.4% for its third straight weekly gain, according to Reuters. Smaller companies held up better: the Russell 2000 gained 2.0% for the week. The week turned on Thursday, when the Nasdaq had its biggest one-day drop since June as investors worried about the cost of financing heavy spending on artificial intelligence, according to Reuters. Technology shares steadied on Friday, but most sectors finished lower that day, with consumer discretionary, consumer staples, and financial stocks each declining more than 1%, Reuters reported. Even after two down weeks, the S&P 500 remained up 11.4% for the year. Geopolitics and energy: oil takes center stageOil prices rose sharply over the week. Brent crude futures traded above $111 a barrel on Tuesday after Yemen’s Houthis said they had attacked Saudi energy, airport, and military targets, according to Reuters. Saudi authorities did not immediately confirm the claims, and Reuters could not independently verify them. Brent crude futures settled at $116.72 a barrel on Friday as concerns about Middle East energy supplies intensified, according to Reuters. Higher oil prices added pressure to the broader market, while the S&P 500 energy sector rose to a record high. At the pump, AAA’s national average for diesel was about $6.35 per gallon on October 26, below the record of $6.53 set on September 22, and regular gasoline averaged about $4.29. Because energy costs flow through to shipping, travel, and many everyday goods, higher oil prices can affect household budgets well beyond the gas station. The consumer: sentiment little changedThe University of Michigan’s final consumer sentiment reading for October was 48.0, essentially unchanged from September’s 48.1, and consumers’ expectations for inflation over the next year were 4.7%, according to the University of Michigan. In plain terms, households remained cautious through October, and many continued to expect prices to keep rising. What to watch this week (October 26 to 30)Tuesday, October 27, 10 a.m. ET: The Conference Board’s consumer confidence index, a second read on how households are feeling. Wednesday, October 28: The Federal Reserve announces its interest-rate decision at the end of its two-day meeting. The Fed raised rates by 0.25 percentage point in September, to a range of 3.75% to 4.00%, and investors will be listening closely for any signals about what comes next. Thursday, October 29, 8:30 a.m. ET: Two reports from the Bureau of Economic Analysis. The first is the initial estimate of third-quarter economic growth (GDP). The second is September personal income and spending, which includes the PCE price index, the Federal Reserve’s preferred inflation measure. All week: Earnings from several of the largest technology companies, whose comments on AI spending and its expected returns may draw extra attention after recent volatility. Ongoing: Developments in the Middle East, shipping routes, and oil prices.
The bigger pictureThe past few weeks have shown how quickly the market’s focus can shift, from inflation to AI spending to oil prices. For many households, these themes connect to practical decisions: how a Fed decision may affect variable-rate debt such as credit cards and home equity lines, how higher fuel and energy costs fit into a monthly budget, and how much of a cushion to keep in cash for near-term needs. A single meeting or data release rarely changes a long-term plan on its own, but periods like this can be a useful time to make sure your plan accounts for a range of possible outcomes. Weekly Market Recap Link About Stacey Important Disclosures
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