Global Markets Weekly Update
U.S. Job Growth Cools as Inflation Remains Persistent
Date: October 2026
U.S. Market Overview
Major U.S. stock indexes finished the week mixed as investors weighed a weaker-than-expected jobs report and declining expectations for a Federal Reserve rate hike against elevated Treasury yields, volatile oil prices, and ongoing uncertainty surrounding the U.S.-Iran conflict. The Nasdaq Composite and S&P MidCap 400 Index advanced, while the Dow Jones Industrial Average and S&P 500 Index declined. The Russell 2000 Index was little changed.
Job Growth and Unemployment
The Bureau of Labor Statistics reported that the U.S. economy added 29,000 jobs in September, significantly below expectations of 90,000. The unemployment rate ticked up to 4.2%. Mixed signals were observed in earlier labor market data, with private payrolls showing an increase but job openings declining.
Inflation and GDP
The PCE price index rose 0.3% in August, with core PCE inflation at 3.0% year-over-year. The second-quarter GDP growth was revised up to 2.2% annualized, reflecting higher investment and consumer spending.
Manufacturing Activity
Manufacturing activity expanded in September, with the PMI at 54.5, indicating continued growth despite rising input costs.
Market Performance Summary
| Index | Friday’s Close | Week’s Change | % Change YTD |
|---|---|---|---|
| DJIA | 51,176.96 | -651.66 | 6.48% |
| S&P 500 | 7,722.72 | -20.69 | 12.81% |
| Nasdaq Composite | 27,190.86 | 122.15 | 16.99% |
| S&P MidCap 400 | 3,668.00 | 19.43 | 10.98% |
| Russell 2000 | 2,832.89 | -4.67 | 14.14% |
International Markets Overview
European equities faced volatility due to elevated oil prices and rising bond yields, with the STOXX Europe 600 Index down 1.14%. Inflation pressures in the eurozone accelerated, leading to concerns over monetary policy. Japan's market saw mixed returns, with the Nikkei 225 up 2.93% driven by AI and semiconductor stocks, while China's equities pulled back amid disappointing stimulus measures.
Colombia and Brazil
Colombian markets were pressured by a surprise rate hike and fiscal concerns, while Brazilian equities advanced amid election uncertainty, with mixed economic data complicating the outlook for monetary policy.