Morning Kickstart: Tech Selloff Leaves Buyers on the Defensive
Published on October 23, 2026, by Greg Michalowski
Market Overview
The dollar is exhibiting mixed performance, Treasury yields are rebounding, and ongoing Middle East tensions are keeping oil prices elevated as the market anticipates upcoming U.S. PMIs and consumer sentiment data.
After a brief respite for technology buyers, sellers regained control, leading to modest declines in U.S. stock futures following significant losses in technology shares the previous day.
Stock Market Performance
On the previous trading day, the Dow Jones Industrial Average remained nearly unchanged, but the underlying market dynamics revealed a stark contrast, particularly in technology and semiconductor stocks. The Nasdaq indices experienced the most significant declines:
- Dow industrial average: Up 11.98 points (0.02%) at 52,873.28
- S&P 500: Down 93.74 points (1.21%) at 7,663.43
- Nasdaq Composite: Down 694.00 points (2.60%) at 26,008.86
- Nasdaq 100: Down 863.83 points (2.90%) at 28,958.69
- Russell 2000: Up 3.01 points (0.11%) at 2,784.03
Investors are increasingly skeptical about whether the returns from AI investments will justify the associated costs, particularly as semiconductor stocks face pressure.
Currency Market Insights
The dollar's performance is mixed, gaining against several currencies while losing ground against the Canadian and New Zealand dollars. Key movements include:
- USDCHF: Up 0.46% near 0.8242
- GBPUSD: Down 0.22% near 1.3370
- EURUSD: Down 0.20% near 1.1192
- USDJPY: Up 0.08% near 156.89
- AUDUSD: Down 0.06% near 0.7015
Currency ranges indicate potential for movement, particularly in pairs like USDCAD, which has a narrower trading range ahead of Canadian retail sales data.
Treasury Yields and Oil Prices
Treasury yields are rebounding after a significant drop, with the 2-year yield at 4.6924% and the 10-year yield approaching 5% at 4.9966%. The market is closely watching upcoming economic data to gauge future yield movements.
Oil prices remain elevated due to ongoing geopolitical tensions in the Middle East, with WTI crude reaching a session high of $101.19. The situation continues to pose risks to supply and complicates inflation outlooks.
Commodity Market Update
Gold prices fell below the $4,000 mark but showed signs of recovery, while copper prices have reached a critical decision point, trading below key moving averages.
European Economic Data
European flash PMI readings were mixed, with France showing contraction in both manufacturing and services sectors. Germany's manufacturing sector performed better, but overall euro-area results fell short of expectations.
European equities are also reflecting this sentiment, with major indices like Germany’s DAX and France’s CAC 40 showing declines.
Upcoming Economic Indicators
Key economic indicators to watch include:
- Canadian retail sales data at 8:30 AM ET
- U.S. flash PMIs at 9:45 AM ET
- Final University of Michigan consumer sentiment reading at 10:00 AM ET