Global Markets Weekly Update - Summary

Market Overview (October 2026)

The week was marked by volatility driven by concerns over AI investments and rising oil prices. Major U.S. stock indexes closed mixed, with small-cap stocks outperforming large-cap technology shares.

U.S. Market Insights

• The Russell 2000 Index rose by 2.00%, while the Nasdaq Composite and S&P 500 fell by 0.71% and 0.47%, respectively.
• Concerns about AI spending impacted technology stocks, with Meta Platforms declining due to high capital expenditure plans.
• The housing market showed signs of weakness, with the Housing Market Index dropping to its lowest level since 2012.
• Initial jobless claims decreased, indicating a resilient labor market.
• Business activity growth remained robust, although inflation pressures are rising.

European Market Insights

• The STOXX Europe 600 Index fell by 1.39%, influenced by rising oil prices and political unrest in France.
• French equities suffered due to civil unrest and fiscal strain, with government bond yields rising significantly.
• Mixed results were reported in corporate earnings, particularly in the energy and luxury goods sectors.
• Eurozone growth slowed, with inflation expectations rising among households.

Asian Market Insights

Japan

• The Nikkei 225 Index declined by 4.03% amid reassessment of AI investments and geopolitical tensions.
• JGB yields fell as investors sought safer assets, while the yen appreciated against the dollar.

China

• Chinese equities fell, with the CSI 300 Index down 1.57% due to concerns over AI-linked investments.
• GDP growth picked up to 4.5%, but investment and consumption remained subdued.
• The People's Bank of China is considering changes to its policy-rate benchmark.

Other Key Markets

Indonesia

• Indonesian markets rebounded after concerns over MSCI's potential downgrade.
• Bank Indonesia maintained its benchmark interest rate while implementing measures to stabilize the currency.

Hungary

• The Hungarian government announced fiscal consolidation plans aimed at reducing the budget deficit.
• The National Bank of Hungary held interest rates steady amid global market volatility.

Market Performance Table

Index	Friday's Close	Week’s Change	% Change YTD
DJIA	52,215.16	212.75	8.64%
S&P 500	7,623.68	-35.76	11.37%
Nasdaq Composite	25,955.34	-184.69	11.67%
S&P MidCap 400	3,616.58	0.80	9.42%
Russell 2000	2,775.89	54.52	11.85%

Source: Reuters, Yahoo! Finance, Bloomberg. Closing data as of 4 p.m. ET.