Verizon Earnings Kick Off Halloween Week 26/10/2026
Market Wrap
U.S. stocks declined Friday as selling pressure spread beyond technology shares, while rising oil prices and renewed fears of escalating tensions between the U.S. and Iran weighed on investor sentiment.
The Dow Jones Industrial Average dropped 652.82 points, or 1.23%, to close at 52,215.16. The S&P 500 fell 0.52% to 7,623.68, while the Nasdaq Composite slipped 0.21% to 25,955.34.
Defensive sectors came under pressure, with consumer staples, utilities and healthcare stocks declining. American Express (AXP) fell more than 3% after announcing plans to cut approximately 5% of its global workforce as part of preparations for increased AI adoption. Caterpillar (CAT) lost roughly 2%, while Goldman Sachs (GS) declined more than 1%.
Energy markets remained a major source of uncertainty. Brent crude reached its highest level since April on Friday following reports that the U.S. and Israel could launch renewed strikes against Iran after November's midterm elections, raising concerns over potential supply disruptions.
Oil prices retreated during Monday's Asian session, with Brent futures falling 2.2% to $114.52 a barrel and West Texas Intermediate declining 2.24% to $101.03. Despite the pullback, elevated energy costs continued to fuel inflation concerns.
Attention now shifts to Wednesday's Federal Reserve policy decision. Futures markets indicate approximately a 90% probability that policymakers will leave interest rates unchanged at 3.75%–4%, although uncertainty persists over the central bank's next move.
Bank of America expects a 25-basis-point rate increase, acknowledging that such a decision would face significant hurdles amid slowing economic momentum and persistent inflation pressures.
With geopolitical risks elevated and monetary policy uncertainty lingering, investors will be watching whether Wall Street can stabilize following another volatile week.
Big Tech Earnings Face Crucial Test
Wall Street faces a pivotal week for corporate earnings as technology giants prepare to report results amid growing concerns over artificial intelligence spending, elevated energy prices and bond-market volatility.
Approximately 179 S&P 500 companies, representing 36% of the index, are scheduled to release quarterly results this week, according to FactSet. Major reports include Microsoft (MSFT) and Alphabet (GOOGL) on Wednesday, followed by Amazon (AMZN) on Thursday.
Analysts expect third-quarter earnings growth of 29.5% for the S&P 500, supported by strong contributions from technology and energy companies. However, elevated expectations have left little room for disappointment, with investors increasingly punishing companies that deliver only modest earnings beats.
So far, approximately 83% of reporting S&P 500 companies have exceeded earnings-per-share estimates. Yet market reactions have remained cautious as investors question whether corporate profits can justify stretched valuations and aggressive AI infrastructure investment.
Microsoft, Alphabet and Amazon, with a combined market capitalization approaching $11 trillion, are expected to play a decisive role in determining market direction. Their results will be closely scrutinized for evidence that substantial AI spending is translating into sustainable revenue and profitability.
Beyond technology, earnings from United Parcel Service (UPS), Coca-Cola (KO), Visa (V) and Starbucks (SBUX) will offer additional insight into consumer spending and broader economic conditions.
Despite expectations for nearly 30% overall earnings growth, the median S&P 500 company is projected to deliver approximately 10% profit growth, highlighting the outsized influence of technology and energy giants.
With the S&P 500 down 1.6% over the past month, investors will be watching whether strong corporate results can restore confidence or whether elevated expectations trigger another round of volatility.
Stocks on the Move
- Moderna (MRNA): Shares fell 5.7% Friday morning, extending Thursday's 25% plunge following a leak of partial data from its cancer vaccine trial with Merck (MRK). Both stocks came under pressure despite the full results appearing clinically meaningful and broadly positive relative to Wall Street expectations.
- Deckers Outdoor (DECK): Shares declined 6.7% after the footwear maker reported fiscal second-quarter revenue of $1.43 billion, missing analysts' expectations of $1.51 billion. Sales from its HOKA and UGG brands also fell short of forecasts.
- Telecom Stocks: AT&T (T) dropped 4.2%, T-Mobile (TMUS) fell 4.3%, and Verizon (VZ) lost 3.6% following reports that SpaceX (SPCX) is negotiating access to 80,000 cell towers to develop a nationwide wireless network. Tower operators Crown Castle (CCI) and American Tower (AMT) surged 7.6% and 5.5%, respectively.
- SpaceX (SPCX): Shares received a boost after PhillipCapital double-upgraded the company to buy from sell, raising its price target to $250 from $75. The firm cited stronger-than-expected performance in SpaceX's AI business, with the new target implying approximately 70% upside.
- Bloom Energy (BE): Shares slipped 2.5% despite better-than-expected third-quarter earnings and revenue, alongside increased full-year guidance. Investors focused instead on the company's negative quarterly free cash flow, raising concerns over its cash generation.
Watchlist: SPCX, TSLA, MSTR, XOM, BE, MU, AMD, INTC, VZ, AMT, MRNA, DELL, ORCL, SKHY
Key Economic Events Today
Economic Data (EST)
No major economic news.
Earnings
Before Market Open: Verizon Communications (VZ)
After Market Close: Welltower (WELL), Cadence Design Systems (CDNS), Nucor Corp. (NUE), Celestica Inc. (CLS)
