The S&P 500 fell 1.95% last week as hotter-than-expected inflation added to pressure on technology shares. The Nasdaq dropped 4.48%, while the Dow gained 0.67%. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.96%.¹˒²
Technology Shares Lead the Market Lower
Markets traded in a narrow range during the first two days of the week as investors awaited third-quarter earnings reports, particularly from major financial services companies. The first batch arrived Tuesday, with mostly strong results, but elevated investor expectations kept markets from moving much.³
By midweek, investors appeared to be rotating out of AI-related stocks as they digested a hotter-than-expected retail inflation report. The combination weighed on sentiment and sent stocks lower. The Dow proved more resilient, ending the session essentially flat.⁴
AI stocks came under renewed pressure Thursday as investors appeared to favor more value-oriented names.⁵
By Friday, rising oil prices and continued selling in AI- and technology-related stocks weighed on the market. Oil prices reached their highest level since May. The Nasdaq recovered some ground late in the session but still posted its worst week since June.⁶
Hot Inflation Puts the Fed in Focus
Fresh consumer and wholesale inflation reports came in hotter than expected last week, putting the Federal Reserve’s late-October meeting in focus.
The Consumer Price Index (CPI) report released Wednesday showed inflation rose 3.7% in September, above economists’ expectations of 3.6%. Thursday’s Producer Price Index (PPI) report showed wholesale inflation reached 6.6% year over year, its highest level in four years.⁷˒⁸
Economic News to Watch
Monday: NAHB Housing Market Index.
Tuesday: Housing Starts. Pending Home Sales.
Thursday: Weekly Jobless Claims. Leading Indicators. Kansas City Fed Survey.
Friday: Purchasing Managers’ Index (PMI)—Manufacturing. PMI—Services. University of Michigan Consumer Sentiment Survey (final).
Source: Investor’s Business Daily — Econoday economic calendar, October 16, 2026.
The Econoday economic calendar lists upcoming U.S. economic data releases, including key economic indicators, Federal Reserve policy meetings, and speaking engagements by Federal Reserve officials. The content is developed from sources believed to provide accurate information. Forecasts and forward-looking statements are based on assumptions that may not materialize and are subject to revision.
Upcoming Earnings Reports
Tuesday: GE Aerospace (GE), Netflix, Inc. (NFLX), RTX Corporation (RTX), Intuitive Surgical, Inc. (ISRG), Capital One Financial Corporation (COF), 3M Company (MMM), General Motors Company (GM), Northrop Grumman Corporation (NOC).
Wednesday: Meta Platforms, Inc. (META), Tesla, Inc. (TSLA), Lam Research Corporation (LRCX), Philip Morris International (PM), Texas Instruments Incorporated (TXN), International Business Machines Corporation (IBM), Abbott Laboratories (ABT), NextEra Energy (NEE), AT&T Inc. (T), CME Group Inc. (CME).
Thursday: The Procter & Gamble Company (PG), Union Pacific Corporation (UNP), Western Digital Corporation (WDC), Valero Energy Corporation (VLO), Lockheed Martin Corporation (LMT), Newmont Corporation (NEM), Spotify Technology (SPOT).
Friday: American Express Company (AXP).
Source: Zacks, October 16, 2026.
Companies mentioned are for informational purposes only and should not be considered a solicitation for the purchase or sale of securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. Investment returns and principal values fluctuate as market conditions change. Investments sold may be worth more or less than their original cost. Companies may reschedule earnings reports without notice.
Footnotes And Sources
1. WSJ.com, October 16, 2026
2. Investing.com, October 16, 2026
3. CNBC.com, October 13, 2026
4. WSJ.com, October 14, 2026
5. CNBC.com, October 15, 2026
6. WSJ.com, October 16, 2026
7. WSJ.com, October 14, 2026
8. CNBC.com, October 15, 2026
Source: YCharts.com, October 17, 2026. Weekly performance is measured from Monday, October 12 to Friday, October 16. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.