Wall Street Eyes AI Rebound as Big Tech Faces Earnings Test
By Jacqueline Policastro | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: Wall Street ended Friday sharply lower as investors pulled back from artificial intelligence stocks amid growing concerns about the cost of financing the AI boom. The Nasdaq fell 2.1%, the S&P 500 lost 1.1%, and the Dow Jones slipped 0.3%.
For the week, the Nasdaq dropped 4.5% and the S&P 500 lost 1.9%, their worst weekly performances since June. The Dow bucked the trend, gaining 0.7%. Semiconductor stocks were among the hardest hit, with Micron falling 5.6% and Intel losing 5.8% on Friday.
Treasury yields eased despite hotter-than-expected September inflation data, while oil prices remained elevated amid renewed disruptions in the Middle East.
Today’s Focus: U.S. stock futures pointed to a rebound Monday morning, with Nasdaq futures climbing roughly 1% and S&P 500 futures gaining about 0.5% as technology shares recovered some of last week’s losses.
Oil prices retreated after President Trump temporarily waived some sanctions on Russia. Brent crude traded near $108 a barrel, although continued disruptions in the Strait of Hormuz kept supply concerns elevated.
Corporate earnings will be in focus this week. Netflix reports Tuesday, followed by Meta and Tesla on Wednesday. Their results will offer updates on sales, profits and spending plans, with Meta’s AI investments among the areas investors are watching.
The Federal Reserve is also in its pre-meeting blackout period ahead of its October 27-28 policy meeting. With inflation still running hot, investors will be watching economic data and bond yields for clues about the central bank’s next move.
ON THE SCHEDULE FOR THE WEEK OF MONDAY, OCTOBER 19, 2026
-Monday, 10 a.m. ET – October NAHB Housing Market Index
-Tuesday, 8:30 a.m. ET – September housing starts and building permits
-Tuesday, 10 a.m. ET – September pending home sales
-Tuesday – General Motors, GE Aerospace and Netflix earnings
-Wednesday, 10:30 a.m. ET – EIA weekly petroleum report
-Wednesday, 1 p.m. ET – Treasury 20-year bond auction
-Wednesday – Meta, Tesla and IBM earnings
-Thursday, 8:30 a.m. ET – Weekly initial jobless claims
-Thursday, 10 a.m. ET – Conference Board Leading Economic Index
-Friday, 9:45 a.m. ET – October S&P Global manufacturing and services PMIs
-Friday, 10 a.m. ET – Final October University of Michigan consumer sentiment
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