Market Brief — October 23, 2026

US equities fell as an AI-led selloff in chips and long-end yields near 5% pressured risk assets, with the S&P 500 (SPX) down about 0.5%, the Nasdaq Composite (^IXIC) off 0.2%, and the Dow (DJIA) losing 1.2%. European stocks also retreated after flash PMI data signalled cooling eurozone growth and French contraction, leaving the DAX (DAX) down 0.7%, the CAC 40 (FRA40) down 0.4%, and the FTSE 100 (UKX) lower by 0.3% even as Brent crude near $115 supported energy shares. Asian index data were unavailable for the session.

US rates markets stayed volatile, with the 10-year Treasury yield rebounding about 5 basis points on Oct. 23 to roughly 4.999% and the 2-year to 4.686% after a 17 basis point slide in the 10-year the prior day, while tools such as CME FedWatch pointed to only a small chance of an October hike but December hike odds in the mid-70% range. Risk sentiment was shaped by an AI-led selloff in chips, with NVDA down 4.40% to $212.21, an AI equities basket off 4.9%, and the Philadelphia Semiconductor Index lower by about 6.8% as investors rotated toward Treasuries while the 10-year yield hovered just below 5%. In the eurozone, the S&P Global Flash Composite PMI Output Index slipped to 51.9 in October 2026 from 53.1 in September, France's composite PMI fell to 48.4 signalling contraction, and faster manufacturing input-cost inflation linked to energy and transport pointed to growth of around 0.3% this quarter and sustained speculation over further ECB tightening.

In the UK, Brent crude futures hit an intraday high of $115.16 and traded around $114–$115, supporting a rally in energy producers such as BP, Shell and Ithaca Energy even as the FTSE 100 (UKX) traded roughly 0.5% lower near 10,670, with aerospace and defence names down about 4.1% and Rolls-Royce off 6.4%. American Express (AXP) said it will eliminate about 3,500 jobs, or roughly 5% of its workforce, recorded a $336 million pretax restructuring charge, and raised its 2026 adjusted profit guidance to $17.60–$17.90 per share after third-quarter revenue rose about 9% to $20.06 billion, shaping views on large financials. Elsewhere, Wells Fargo and Intuit joined other issuers in objecting to tokenization of their shares on OKXICE, bringing total objections to 22, while Heineken's warning that GLP-1 weight-loss drugs could cut alcohol demand and survey data showing GLP-1 users plan to spend 11% more on high-protein items highlighted shifting consumption risks and opportunities across beverage and protein-focused food companies. CTS Corporation completed its acquisition of Millar Holdings. Malteurop announced an agreement to acquire the Chunlei Malting Co. malting plant to expand its operations and export presence, while Dayforce agreed to acquire Ribbon AI Inc. to advance its agentic recruiting capabilities. Midera Food Processing announced the acquisition of Phoenix Innovations, and WSG agreed to acquire the Sanctuary contemporary women's brand to support its global growth.