Market Summary - October 29, 2026

Key Highlights

The market today is heavily influenced by the recent Federal Reserve decision, earnings reports from major tech companies, and upcoming economic data releases. The Fed has decided to keep interest rates unchanged, which has led to a mixed sentiment in the market.

Federal Reserve Decision

The Federal Reserve maintained its current interest rates, with some hawkish dissent from members Hammack and Cook. However, Fed Chairman Kevin Warsh's press conference did not present any hawkish surprises, which has contributed to a weaker dollar and lower yields on short-term bonds.

Market Reactions

Disappointment over Alphabet's earnings, which fell short of expectations for both revenue and profit, has negatively impacted Nasdaq futures. Asian markets closed mixed, with South Korea's KOSPI being the weakest performer due to disappointing results from Samsung. European futures indicate a flat opening.

Oil Prices

Oil prices are declining despite previous geopolitical tensions, as there are emerging hopes for mediation between the U.S. and Iran. Reports of intensive communications between the two nations have shifted market sentiment away from escalation fears.

Upcoming Economic Data

Today's economic calendar is packed with significant data releases:

• 11:00 AM: Eurozone sentiment indicators (Economic Sentiment, Consumer Confidence, Industry Sentiment)
• 1:30 PM: U.S. PCE inflation data (expected core PCE increase of 0.3% MoM and 3.1% YoY)
• 1:30 PM: First estimate of Q3 GDP (consensus at 3.2% annualized)
• 1:30 PM: Weekly jobless claims (forecast around 199,000)
• 2:15 PM: ECB interest rate decision (expected to remain unchanged)
• 3:30 PM: EIA gas inventory report

The market is particularly focused on the PCE and GDP data, as a weaker reading could raise doubts about future tightening by the Fed.

Earnings Reports

The earnings season is in full swing, with notable reports from European oil companies showing strong results. However, Volkswagen reported an operating loss, which has raised concerns. In the U.S., key earnings reports are expected from Eli Lilly, Mastercard, Caterpillar, and Merck, with Amazon's performance being crucial for restoring confidence in the tech sector following Alphabet's disappointing results.

Conclusion

As the day progresses, market participants will be closely monitoring the economic data releases and the ECB's interest rate decision, while also assessing the impact of earnings reports on market sentiment.