Finance
Week Ahead: Fed Announces Rate Decision Oct. 28; Alphabet, Microsoft and Amazon Report Earnings; Q3 GDP and September PCE Data Due Oct. 29
On Oct. 23, futures put the odds of a rate hike at about 10%, so most expect the Fed to hold. That turns attention to Big Tech's spending plans and to inflation data, where forecasters expect headline PCE prices to rise 0.5% in September and third-quarter growth to come in at roughly 3.0%–3.2%.
American Express Plans to Cut About 5% of Its Workforce and Records a $336 Million Pretax Restructuring Charge, Citing AI Preparation
Executives disclosed the cuts, about 3,500 jobs by the company's count, on the Oct. 23 third-quarter earnings call, alongside higher profits and a raised full-year forecast; the shares closed down between 3.34% and 3.7% that day, depending on the data source.
Dow Falls 652.82 Points as Brent Oil Settles at $116.72, Its Highest Close Since April 29
On Friday, Oct. 23, the Dow lost 1.23%, the S&P 500 lost 0.52% and the Nasdaq lost 0.21%. Brent crude rose 3.1% and WTI rose 3.8%, after new Houthi attacks on Saudi Arabia and a New York Times report that the U.S. and Israel have plans for new strikes on Iran.
U.S. Initial Jobless Claims Fall 6,000 to 194,000, Lowest Since July; Continuing Claims Rise to 1.728 Million
Layoffs stayed near historic lows in the week ending Oct. 17, while the number of people still collecting benefits hit a six-week high. Economists disagree on whether that points to a tight labor market or a frozen one.
Philadelphia Chip Index Falls 6.72% Thursday; Kospi Erases 4% Drop to Close Up 0.3% as SK Hynix Halts Solidigm Listing Review
SK Hynix's filing cited market conditions and its share price. Four days earlier, South Korean regulators had said a U.S. listing of its Solidigm unit would fall under the country's double-listing rules.
10-Year Treasury Yield Falls Below 5% for First Time Since September as AI Stocks Slide; Brent Oil Settles at $113.17
Bond prices jumped on Thursday, Oct. 22, after Meta's earnings set off a tech selloff. Reuters put market pricing for a December Fed rate hike at about 85%, though other trackers showed lower odds, even as a Middle East flare-up sent oil to its highest close since May.
FAA Certifies Boeing 737 Max 10, the Largest Max Model, With 1,555 Orders Waiting
The U.S. regulator approved the jet on Oct. 20, 2026, more than five years after its first flight. Boeing says deliveries begin in the coming months, but some reports place the first deliveries in 2027.
Netflix Third-Quarter Profit Tops Estimates; Company Lowers 2026 Ad Revenue Forecast to About $2.7 Billion From $3 Billion, and Shares Fall About 6% Premarket
Netflix earned 87 cents a share against an expected 82 cents on $12.87 billion in revenue, but its fourth-quarter revenue and profit forecasts came in below analyst estimates the same week the company cut about 1,000 jobs and replaced its top content executive.
SpaceX Reports Q3 Revenue of $14.6 Billion, Up 161%, and $4.4 Billion Net Income; Musk Says SpaceX and Tesla Boards Formed Committees to Study a Merger
SpaceX shares rose roughly 9% to 10% in premarket trading. Musk says he is recused from the talks, the committees have not agreed on terms, and a Tesla deal would need votes from a majority of all outstanding Tesla shares.
Kospi Closes Down 3.73% and Nikkei About 1.3% on AI-Spending Doubts as Brent Trades Near $110 and Traders Price a December Fed Hike
SK Hynix fell 4.23% in Seoul on Tuesday, to its lowest close since April. On Monday, the S&P 500 rose 0.41% to 7,690.73, ahead of the Federal Reserve's Oct. 27-28 meeting.
U.S. Stock Futures Rise as AI Shares Rebound From Biggest Weekly Drop Since Late June; Brent Falls to About $107 and 10-Year Yield to 5.085%
On Sunday, Treasury Secretary Scott Bessent called September's 3.7% inflation an 'energy shock' tied to the Iran war. Fed-funds futures show a hold at the Oct. 27-28 meeting as most likely, with an estimated 78% to 84% chance depending on the reading. They also show close to a 90% chance of a rate hike by December.
Nasdaq Falls 2.1% Friday and 4.5% for the Week, Its Worst Week Since June; Chip Index Ends Week Down 11.4%
On Friday the S&P 500 fell 1.1% to 7,659.44 and CoreWeave dropped nearly 12%. News outlets pointed to worries about AI-related debt, a Chinese memory-chip rival, high oil prices and interest rates. The Dow finished the week up 0.7%.