Next week's Federal Reserve meeting, on October 27u201328, 2026, looks set to end with no change, with forecasts expecting the Fed to keep its benchmark rate at 3.75% to 4.00% when it announces its decision on Wednesday, October 28. As of October 20, CME FedWatch showed futures traders putting the odds of a pause at about 83%, with roughly a 17% chance of a quarter-point hike and almost no chance of a cut, and with inflation at 3.7%, most Fed officials expect one more increase before year-end, which puts the December meeting in focus.
Microsoft Corporation, Alphabet Inc., and Amazon.com, Inc. are among the major companies expected to attract attention as investors assess AI spending, cloud growth, and profitability, with major tech companies expected to report earnings this week including tech companies Microsoft (MSFT) and Alphabet (GOOGL) on Wednesday, and Intel (INTC) and Amazon (AMZN) on Thursday.
Investors are becoming increasingly demanding when it comes to AI investment, with attention shifting from revenue growth towards profitability, capital expenditure and tangible returns, and strong results and reassuring guidance could help restore confidence in Amazon and other AI-related stocks, but disappointing margins or further increases in spending could reinforce concerns about elevated valuations.
Verizon Communications is all geared up to announce its third-quarter earnings in the coming week with Wall Street projecting its EPS will rise in single digit, with VZ expected to release its Q3 2026 earnings on Monday, Oct. 26, before the market opens, with analysts expecting the company's EPS to be $1.27 on a diluted basis, up 5% from $1.21 in the year-ago quarter.
The US Composite PMI eased to 57.6 in October 2026 from 58.4 in September, a two-month low, but remained firmly in expansion territory and signalled the second-strongest increase in business activity since March 2022. Growth in new orders strengthened to its highest level in more than four-and-a-half years, while export sales recorded their largest gain since May 2022. However, selling prices picked up sharply again, the latest increase being the largest since May 2022, at a pace that indicates consumer price inflation is likely to rise further above the Fed's target in the coming months.
U.S. crude oil fell over 2% on Monday as investors weighed the threat of further attacks on Saudi Arabian energy infrastructure against concerns that elevated prices could eventually erode demand. Brent fell to 114.53 USD/Bbl on October 26, 2026, down 1.87% from the previous day, and over the past month, Brent's price has risen 17.07%, and is up 76.48% compared to the same time last year.
Microsoft Corporation, Alphabet Inc., and Amazon.com, Inc. are among the major companies expected to attract attention as investors assess AI spending, cloud growth, and profitability, with major tech companies expected to report earnings this week including Microsoft (MSFT) and Alphabet (GOOGL) on Wednesday, and Intel (INTC) and Amazon (AMZN) on Thursday. This week's reports could provide an important test for technology stocks as investors increasingly question whether heavy AI infrastructure spending will deliver sufficient financial returns.
Asia's busiest earnings week will put the AI trade to a major test as investors look for proof that billions in investment are translating into profits, and that growth is spreading beyond tech. About 550 of the roughly 1,200 companies in the MSCI Asia Pacific Index are due to report this week, according to data compiled by Bloomberg, including some of the biggest names in the AI boom, such as Korean memory giants SK Hynix Inc. and Samsung Electronics Co., Japanese chip firms Advantest Corp. and Tokyo Electron Ltd., and Chinese suppliers like Eoptolink Technology Inc.
The October 2026 US Jobs Report for small businesses shows a monthly decline in hiring, with small businesses (1-9 employees) decreasing by 7,000 jobs in September 2026, a monthly decline of 0.05%, bringing total small business employment to 12,929,100. Small business employment decreased in 10 of 12 sectors tracked by the Small Business Index, with the largest decrease (-2,600 jobs) coming from education and health services, also the largest sector by employment.
NFIB's September jobs report shows a decrease in hiring activity among small businesses as the labor market continues to soften. A seasonally adjusted 32% of owners reported job openings they could not fill, down 3 points from August but remaining 8 points above the historical average.
The Federal Reserve is widely expected to leave benchmark interest rates unchanged at 3.75% to 4.00% following its October 27u201328 meeting, even as hot inflation data and surging energy costs keep additional hikes on the table for later this year. With inflation at 3.7%, most Fed officials expect one more increase before the year is over, and December is where that risk sits.
For an operator, this week brings a critical fork in the road: the Fed is almost certain to hold rates steady, which should offer some relief on borrowing costs, but persistent inflation in input costs and energy prices continues to squeeze margins and pass-through power matters more than ever. PMI data shows strong order backlogs and tight employment conditions, but small business hiring is declining and job openings are harder to fill, suggesting a labor market shifting from crisis to constraint. The message for operators is clear: wage pressure may ease, but finding and retaining quality workers at reasonable cost requires active strategy.
The tech earnings reports this week will set the tone for capital spending across the economy; if major cloud and AI vendors disappoint on profitability or guidance, it could signal a pullback in the infrastructure investment that has propped up demand in many supply chains. Operators in construction, logistics, and manufacturing should watch those earnings closely, along with the Fed's October statement for any hints about December rate intentions. Oil price moderation today is welcome, but energy costs remain elevated and volatileu2014hedge accordingly.