Your Weekly Market Wrap-Up

19th - 23rd October 2026

Global Highlights

U.S. Markets

U.S. equities declined as concerns about the cost and profitability of AI investment weighed on technology stocks. Investors shifted toward defensive sectors and government bonds. Rising oil prices added inflation concerns, while demand for safety pushed the 10-year Treasury yield below 5% for the first time in a month.

European Markets

European equities fell as higher energy prices, concerns over French government debt, and weak growth indicators weighed on sentiment. Eurozone business growth slowed to its weakest pace in four months, with France returning to contraction. In the UK, unexpectedly higher inflation and weaker consumer confidence added to economic concerns.

Asian Markets

Asian markets faced pressure from the technology sell-off, with Japan and South Korea exposed to concerns over AI spending. Chinese and Hong Kong shares rebounded on Friday after earlier declines. China’s economic growth exceeded expectations, supported by exports and manufacturing, although weak consumption and property investment remained challenges.

Weekly Spotlights

Investors became more cautious about the rising cost of AI investment and whether future profits will justify that spending. Money rotated from technology toward healthcare, utilities, and consumer staples. Meanwhile, renewed Middle East tensions lifted oil prices, complicating the inflation outlook. Treasury bonds attracted buyers seeking safety. Expectations of an October Fed rate hike also fell sharply, showing how quickly the market’s focus has shifted from inflation alone toward investment and growth risks.

Market Performance

Asset Name Weekly Closing Level Weekly % Return
S&P 500 7,623.68 -0.47%
DJIA (Dow Jones) 52,215.16 0.41%
Nasdaq Composite 25,955.34 -0.71%
Nikkei 225 62,693.16 -2.00%
FTSE 100 10,690.36 -1.76%
Shanghai Composite 3,690.48 -0.69%
Sensex (BSE) 73,123.83 -2.15%
ADX Index (UAE) 9,588.41 -2.24%
Gold 4,010.00 -4.09%
Brent Oil (USD/bbl) 116.93 6.44%

Outlook

We remain constructive on equities, supported by resilient U.S. economic growth, strong corporate earnings and steady consumer spending. However, elevated valuations, inflation and AI-related concentration could create further volatility. We favour quality U.S. large- and mid-cap equities while maintaining diversification across sectors and regions, particularly through value and defensive investments. Any meaningful correction may offer an opportunity to gradually increase exposure to quality equity funds at more attractive valuations. Within fixed income, shorter-duration investment-grade bonds remain attractive for income and stability. Our priority remains balanced portfolio construction, managing concentration risk and protecting clients from unnecessary exposure.

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Disclaimer

This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.