This week was a good reminder that “the market” isn’t one thing. Big technology stocks fell hard late in the week, while most other parts of the market actually went up. Here is a plain-language look at what happened during the week of October 26, 2026, and what’s coming next.
The week in the indexes
- S&P 500: down 0.57% for the week, closing Friday at 7,580.07.
- Dow Jones Industrial Average: down 0.85%, closing at 51,770.31.
- Nasdaq Composite: down 2.00%, closing at 25,437.00.
- Russell 2000 (smaller companies): up about 1.3%.
Friday did most of the damage. The S&P 500 fell 1.82% that day and the Nasdaq lost 2.86%. Even so, nine of the 11 major stock sectors finished the week higher. When a few very large companies drop, they can pull the big indexes down even if most stocks rise.
What moved
- Big Tech earnings disappointed. Alphabet and Amazon missed earnings expectations, and investors worried about how much these companies are spending on AI and whether that spending will pay off. Alphabet fell about 12.6% for the week.
- Chip stocks slid. Intel fell 28.6% on Friday after a weak outlook, and the Philadelphia chip index dropped 7.2% that day.
- Not all tech news was bad. Microsoft beat earnings expectations, with its cloud business growing nearly 50% from a year earlier.
- Defensive sectors led. Health care (+3.1%) and materials (+2.8%) were the best sectors for the week. Communication services (−5.3%) and technology (−2.0%) were the worst.
- The Fed held rates steady, as expected. Separate data showed the economy growing at a 3.4% annual pace in the third quarter, while PCE inflation rose to 3.6% from a year earlier.
What to watch next week
- The October jobs report comes out Friday morning. Forecasters expect about 55,000 new jobs and an unemployment rate of 4.2%. Earlier in the week, job openings (Tuesday) and private payrolls (Wednesday) give early clues.
- More earnings. Apple and Palantir report Monday after the close, and AMD reports Tuesday. After this week, investors will be watching closely for any more AI spending worries.
- The U.S. midterm elections are Tuesday.
The takeaway for beginners: one rough day for a handful of giant companies can make the headlines look worse than the overall market really was. Looking at sectors and smaller companies helps you see the whole picture.
This post is for educational purposes only and is not financial advice.