Financial insights for the week ending October 30, 2026
For the week ending October 30th, markets finished mostly lower, with the S&P 500 closing down 0.6%, the Nasdaq shed 2%, the Dow Jones Industrial Average lost 0.9%, and the Russell 2000 closed up 1.3%.
Technology stocks, particularly those tied to AI, had a rough week as earnings results failed to meet sky-high investor expectations. Several of the largest technology companies reported results that missed analysts’ projections or came with soft forecasts, and many of them are also spending record amounts on AI. Until this investment generates meaningful and expected returns, the spending can put considerable pressure on free cash flow of these companies. Money moved toward more defensive sectors of the market, somewhat akin to the rotation we saw over the summer. The question remains whether all this spending will eventually justify itself, and this week's earnings left investors with more questions than answers. Wednesday’s Fed meeting was the other main event, and it ended with rates unchanged in the 3.75% to 4% range. The vote was 10 to 2, with both dissenters wanting a rate increase, a sign that some officials are not done tightening. Chair Warsh was direct in his press conference that the Fed is not tolerating inflation above its 2% goal and markets are now leaning toward another hike in December. There was some positive economic news too. GDP grew at a 3.4% annual pace in the third quarter, up from 2.2% in the second and slightly better than forecast. Inflation, however, remains the sticking point. The Fed’s preferred inflation gauge rose 3.6% over the past year in September, up from 3.4% in August. Consumer spending rose 0.5% in September, but was essentially flat after adjusting for inflation, suggesting households are getting less purchasing power out of their spending today than they were last year.
Next week has more going on than it first appears. The ISM manufacturing report is released Monday, and Wednesday brings the same data for services. The two will show how business activity fared in October and what companies are paying for their inputs. Wednesday also brings ADP's private-sector payroll report, giving us another look at the labor market ahead of Friday's main event, the October jobs report. September’s hiring number was weak, and with the Fed leaning toward a hike in December, Friday’s read could carry more weight than previous reports. Earnings continue too, with several more notable tech names reporting, so the AI conversation is not fading away yet. Tuesday is also Election Day, with control of Congress at stake and markets watching for potential changes to the policy outlook.
This week’s tip is a repeat but deserves a reminder every couple of months, and that’s a budget audit. With inflation running as high as it is, the timing is good. Pull the last three months of credit card and bank statements and go through them at the transaction level. Three months should provide enough data to discern recurring charges from one-time purchases. Look for subscriptions you forgot about or charges that have quietly increased. Odds are you'll find at least a few expenses worth investigating further. If reading statements by hand sounds painful, plenty of apps can do the sorting for you, grouping purchases into categories and flagging recurring charges. Your bank’s own app often has this built in and is the safest place to start, since every outside app you connect is another link to your accounts. Even by eliminating a few unnecessary recurring expenses, you could save hundreds over the course of a few months!
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.