The S&P 500 fell 0.47% last week as renewed concerns about AI-related debt and rising oil prices weighed on stocks late in the week. The Nasdaq declined 0.71%, while the Dow gained 0.41%. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.58%.¹˒²
AI Rally Reverses as Debt Concerns Return
Stocks started the week with an AI-led rebound as investors looked ahead to a busy schedule of corporate earnings reports. On Tuesday, investors welcomed the first wave of results and falling oil prices, helping lift sentiment.
Technology shares gained further ground midweek after reports that two of the largest megacap technology firms had formed a committee to evaluate a potential merger. The news helped lift all three major U.S. indexes. The Nasdaq rose more than 1%, while the S&P 500 recorded its third consecutive winning close.³˒⁴
The rally reversed Thursday as concerns about AI-related debt resurfaced and oil prices climbed amid renewed geopolitical tensions. The Nasdaq fell more than 2.5%, while the S&P 500 dropped more than 1%. Both indexes recorded their steepest daily declines since June and July, respectively.⁵
Technology stocks remained under pressure Friday as investors continued weighing AI-related risks. The Dow fell more than 1%, while the S&P 500 and Nasdaq also faced selling into the close.⁶
Housing Data Point to Further Weakness
While market attention focused on technology stocks and corporate earnings, last week's housing data offered another sign of weakness in the housing market.
Housing starts fell 5.2% in September from the prior month, missing expectations for a 2% increase. Economists had expected starts to rise for a second consecutive month, but instead they declined for a third straight month.⁷
Pending home sales also fell in September, reaching their lowest level on record. Rising mortgage rates were cited as one factor contributing to the decline.⁸
Economic News to Watch
Tuesday: Durable Goods. S&P Cotality Case-Shiller Home Price Index. New Home Sales. Consumer Confidence (Conference Board). Federal Open Market Committee (FOMC) Meeting, Day 1.
Wednesday: Trade Balance in Goods. Wholesale Inventories. Retail Inventories. FOMC Meeting, Day 2 / Fed Interest Rate Decision.
Thursday: Gross Domestic Product (GDP). Weekly Jobless Claims. Personal Consumption Expenditures (PCE) Index.
Friday: Employment Cost Index.
Source: Investor’s Business Daily — Econoday economic calendar, October 23, 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
Monday: Verizon Communications Inc. (VZ), Welltower Inc. (WELL), Cadence Design Systems, Inc. (CDNS).
Tuesday: Visa Inc. (V), The Coca-Cola Company (KO), The Boeing Company (BA), S&P Global Inc. (SPGI), Corning Inc. (GLW), HCA Healthcare, Inc. (HCA).
Wednesday: Alphabet Inc. (GOOG / GOOGL), Microsoft Corporation (MSFT), GE Vernova Inc. (GEV), KLA Corporation (KLAC), Amphenol Corporation (APH), T-Mobile US, Inc. (TMUS), ServiceNow, Inc. (NOW), Fortinet, Inc. (FTNT), Automatic Data Processing, Inc. (ADP), Phillips 66 (PSX), Equinix, Inc. (EQIX).
Thursday: Amazon.com, Inc. (AMZN), Eli Lilly and Company (LLY), Mastercard Incorporated (MA), Intel Corporation (INTC), Merck & Co., Inc. (MRK), Caterpillar Inc. (CAT), Sandisk Corporation (SNDK), Gilead Sciences, Inc. (GILD), Bristol Myers Squibb Company (BMY), Altria Group, Inc. (MO), Stryker Corporation (SYK), Starbucks Corporation (SBUX).
Friday: ExxonMobil (XOM), AbbVie Inc. (ABBV), Chevron Corporation (CVX), General Dynamics Corporation (GD).
Source: Zacks, October 23, 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 23, 2026
2. Investing.com, October 23, 2026
3. CNBC.com, October 20, 2026
4. CNBC.com, October 21, 2026
5. CNBC.com, October 22, 2026
6. WSJ.com, October 23, 2026
7. WSJ.com, October 20, 2026
8. WSJ.com, October 20, 2026
Source: YCharts.com, October 24, 2026. Weekly performance is measured from Monday, October 19 to Friday, October 23. 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.