Week In Perspective | Tech Under Pressure After Hot Inflation Reports [19-October-26]

Updated: 10-19-2026

The Week on Wall Street

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.^1,2

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.³

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.⁴

On Thursday, AI stocks were under pressure again as investors appeared to favor more value-oriented names.⁵

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.⁶

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.^7,8

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).

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 of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.

This Week: Companies Reporting Earnings

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. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.