Markets in 5Monday, October 26
Oil worries weigh on stocks as Fed meeting nears
US stocks slipped on Friday as oil stayed elevated and the ten-year yield closed at 5.00%, with the Fed's decision on October 28 next on the calendar.
Stocks
S&P 500 slips to second straight weekly decline
The S&P 500 fell 0.52% to 7,623.68 on Friday, its second straight weekly decline, as oil's rally and inflation worries weighed on shares. The Dow dropped 1.23%, or 652.82 points, to 52,215.16, though it still finished the week higher. The Nasdaq Composite slipped 0.21% to 25,955.34, and the Russell 2000 eased 0.29%. Reuters said chip stocks mostly steadied while oil replaced artificial intelligence as the main market worry.
Commodities
Brent settles at $116.72 after Houthi attacks
Brent crude settled at $116.72 a barrel on Friday after Houthi attacks on Saudi Arabia pushed prices higher. Energy was the only clear sector gainer, with Exxon, Chevron and ConocoPhillips all closing at record highs. Oil fell in early Asian trade on Monday after reports that Qatari mediators were in Tehran over the weekend, and Trump had reportedly ruled out an immediate strike on Iran.
The Fed
Fed expected to hold rates steady on Wednesday
The Federal Open Market Committee meets October 27 and 28, with the decision due Wednesday at 2 p.m. ET, followed by a press conference with Chair Kevin Warsh. The target range is 3.75% to 4.00%, after the Fed raised rates 25 basis points in September, its first hike since 2023. Market pricing as of October 20 showed about 83% odds of a pause and 17% odds of a quarter-point hike.
Rates
Ten-year Treasury yield closes Friday at 5.00%
The ten-year Treasury yield closed at 5.00% on October 23, up 4 basis points from 4.96% the previous day, according to the Treasury's official par yield data. The two-year yield was 4.69%, leaving the two-ten spread at 31 basis points. A year earlier the ten-year stood at 4.01%, and the thirty-year closed at 5.33%.
Earnings
Deckers and Infosys fall on revenue miss and outlook cut
Deckers fell about 4.9% after reporting revenue of $1.43 billion, short of the $1.51 billion estimate. Infosys dropped about 6.6% after cutting its fiscal 2027 revenue growth outlook to 1%–2%. Robert Half rose sharply after beating third-quarter forecasts, while Bloom Energy fell about 11% despite a beat and a guidance raise because of negative free cash flow.