Weekly Economic Update October 19, 2026

Ed Papier |

Stocks were under pressure last week as corporate earnings results, rising oil prices, and AI valuation anxieties unsettled investors. The Standard & Poor's 500 Index lost 1.95 percent, while the Nasdaq Composite Index declined 4.48 percent. By contrast, the Dow Jones Industrial Average gained 0.67 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.96 percent.

Tough Week for Tech

Markets traded in a tight range over the first two days of the week as investors awaited a slew of Q3 corporate earnings results, mostly from big financial services companies, later in the week. That first batch of earnings announcements came in Tuesday, with mostly strong results, but high investor expectations kept markets from moving much.

Then midweek, investors appeared to rotate out of AI names as they digested a warm retail inflation report. Those two factors shifted sentiment, and stocks trended lower. However, the Dow Industrials proved more defensive, ending the session essentially flat.

On Thursday, AI stocks were under pressure again as investors appeared to favor more value-oriented names.

As the week wrapped up, oil prices rose to their highest level since May, while sellers targeted AI- and tech-related names. The Nasdaq found some support at the close but still had its worst week since June.

Inflation Jitters

Fresh retail and wholesale inflation reports were out last week. Both came in hotter than expected, which put the spotlight on the Fed's meeting in late October.

The Consumer Price Index report, out Wednesday, showed inflation rose 3.7 percent in September, higher than the 3.6 percent economists expected. And Thursday's Producer Price Index report showed wholesale inflation hit 6.6 percent year over year—the highest level in four years.

This Week: Key Economic Data

  • 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. U. Michigan Consumer Sentiment Survey (final).

Listen to this update

Weekly Economic Update: October 19, 2026, Tech Sells Off as Inflation Reports Run Hot

Episode transcript

Welcome to the Amadeus Wealth Weekly Economic Update for the week of October nineteenth.

Stocks were under pressure last week as corporate earnings results, rising oil prices, and AI valuation anxieties unsettled investors.

Here is how the major indexes finished. The S&P 500 lost one point nine five percent. The Nasdaq Composite declined four point four eight percent. By contrast, the Dow Jones Industrial Average gained zero point six seven percent. And the MSCI EAFE index, which tracks developed overseas markets, rose zero point nine six percent.

Let's walk through how the week unfolded.

Markets traded in a tight range over the first two days of the week as investors awaited a slew of third-quarter corporate earnings results, mostly from big financial services companies, later in the week. The first batch of earnings came in Tuesday, with mostly strong results, but high investor expectations kept markets from moving much.

Then midweek, investors appeared to rotate out of AI names as they digested a warm retail inflation report. Those two factors shifted sentiment, and stocks trended lower. However, the Dow Industrials proved more defensive, ending the session essentially flat.

On Thursday, AI stocks were under pressure again as investors appeared to favor more value-oriented names.

As the week wrapped up, oil prices rose to their highest level since May, while sellers targeted AI and tech-related names. The Nasdaq found some support at the close but still had its worst week since June.

Now, a closer look at inflation.

Fresh retail and wholesale inflation reports were out last week. Both came in hotter than expected, which put the spotlight on the Fed's meeting in late October. The Consumer Price Index report, out Wednesday, showed inflation rose three point seven percent in September, higher than the three point six percent economists expected. And Thursday's Producer Price Index report showed wholesale inflation hit six point six percent year over year, the highest level in four years.

The charts that come with this update add some perspective.

Over the past month, the Nasdaq is up two point eight four percent, the S&P 500 is up two point one six percent, the Dow is up zero point two zero percent, and the developed overseas index is down one point nine three percent.

Looking at the year so far, the Nasdaq has returned fifteen point four six percent, the S&P 500 fourteen point one six percent, the MSCI EAFE nine point three four percent, and the Dow nine point nine zero percent.

Over the past twelve months, the Nasdaq is up eighteen point five four percent, the S&P 500 seventeen point four four percent, the MSCI EAFE fourteen point three six percent, and the Dow fourteen point six three percent.

And over five years, the Nasdaq has returned eighty-five point nine eight percent, the S&P 500 eighty-five point nine nine percent, the Dow sixty-two point four seven percent, and the MSCI EAFE fifty-four point nine eight percent. These are total returns, which include dividends.

Bonds tell their own story. The ten-year Treasury yield ended the week at five point zero nine percent. A month ago it was five point zero one. Three months ago it was four point five seven. And a year ago, it was three point nine nine.

Now, a look at the week ahead. Monday brings the NAHB Housing Market Index. On Tuesday, housing starts and pending home sales. Thursday brings weekly jobless claims, leading indicators, and the Kansas City Fed survey. And Friday, the manufacturing and services Purchasing Managers' Index readings, and the final University of Michigan consumer sentiment survey.

We'll leave you with the quote of the week, from Josh Billings. "As a general rule, if you want to get at the truth, hear both sides and believe neither."

That's the update for this week. Thank you for listening, and as always, please reach out to us with any questions.

Amadeus Wealth Alternatives Inc. (AWA) is a registered investment adviser located in Hackensack, NJ. The information provided in this program is for informational purposes only and is not intended to provide any investment advice or service. The contents offer general information only about AWA and its services and should not be acted upon without obtaining specific advice from a licensed professional regarding the investor's own situation or concerns.