Market Brief — October 21, 2026

U.S. indices rallied after SpaceX reported Q3 2026 revenue of $14.6 billion and net income of $4.4 billion, with the Dow Jones Industrial Average (DJIA) up 0.7%, the S&P 500 (SPX) up 0.6%, and the Nasdaq Composite (^IXIC) up 1.1%. European equities also gained, as Germany's DAX (DAX) rose 1.3%, France's CAC 40 (FRA40) added 1.1%, and the FTSE 100 (UKX) advanced 0.2%. In Asia, the Shanghai Composite (000001.SS) finished flat with a 0.0% move on volume of about 3.5 billion.

UK CPI rose to 3.5% year-on-year in September 2026 from 3.1% in August, above the 3.4% consensus and forecast, and money-market pricing now implies roughly a 95–98% probability of a 25 bp Bank of England hike to 4.0% at the 5 November meeting with some further tightening priced for year-end. Argentina's sovereign dollar bonds remained the weakest in EM, with yields near 12%, average dollar bonds down about 0.7% and longer-dated Globales and Bonares underperforming, while JP Morgan's country-risk index touched about 710 bps intraday as investors focus on roughly US$25 billion of hard-currency payments due in 2027, including about US$4.5 billion in January. Bank Indonesia kept the seven-day reverse repo rate at 5.75%, lifted the Deposit Facility rate by 25 bps to 5.00%, and announced phased cuts to rupiah reserve requirements plus expanded DNDF hedging incentives in a bid to support the currency, while citing September headline inflation of 3.28% and maintaining a 2026 GDP growth forecast of 4.9–5.7%.

SpaceX's Q3 2026 results, with revenue of $14.6 billion, net income of $4.4 billion and Super Intelligence unit revenue of about $7.6 billion plus Q1 2027 revenue guidance of $33–37 billion, sparked a tech-led rally that lifted the S&P 500 about 0.6% and the Nasdaq Composite about 1.1%, while server-maker Super Micro Computer surged around 9% after raising its revenue outlook. In Europe, EssilorLuxottica reported Q3 revenue of €7.49 billion versus expectations of about €7.36 billion and disclosed €486 million of Q3 wearables revenue, helping shares jump more than 11% and as much as roughly 14–15% during the session, while Michelin lowered full-year volume guidance to 'slightly negative' and posted Q3 revenue of €6.49 billion versus €6.63 billion expected, sending its stock down about 6.1% to €31.22. Carrefour trimmed its 2026 recurring operating income margin expansion target to 0–15 bps from 25 bps, guided 2026 EPS to be broadly stable or slightly higher instead of high-single-digit growth, warned unrest could cut recurring operating income by €80–200 million and reduced 2026 capex to €1.6 billion with net free cash flow now seen slightly lower than 2025, and its shares plunged in Paris with reported intraday declines in the low-to-mid teens. Mérieux NutriSciences completed its acquisition of Certified Group, JP3E Holdings completed its acquisition of Demora Foundation to take 100% ownership, Mapmygenome closed its purchase of dnaPower, and Data I/O completed the acquisition of V-TEK, which is described as transformational and expected to roughly double revenue. Announced deals on the day included Stord acquiring AMS Fulfillment to expand logistics scale and coverage, Cerro de Pasco Resources acquiring the remaining Quiulacocha tailings and associated surface rights, Sanwire agreeing to acquire Bateau Asset Management, Arthur J. Gallagher & Co. acquiring The Mund Group, Tide Rock acquiring Electro-Spec as a specialty surface-finishing platform, and Newforma acquiring Lumi AI.