S&P 500 Futures Rise 0.2% as Markets Await Tech Earnings and Fed Decision
Key Facts
S&P 500 futures rose 0.2% on the morning of Monday, October 26, according to the Associated Press, as a busy week of corporate earnings and a Federal Reserve meeting began. Among the companies expected to report are Alphabet, Microsoft and Amazon, the agency said. The announcements come as attention turns to returns on AI spending, a theme highlighted by results from companies tied to the sector. The week also coincides with the Federal Open Market Committee meeting on October 27 and 28. The Fed chair is scheduled to hold a news conference on October 28.
On the political front, Brazilian President Luiz Inácio Lula da Silva won a fourth, nonconsecutive presidential term, defeating Senator Flávio Bolsonaro in Sunday's runoff, according to Reuters via Investing.com. Before the second round, Brazilian stocks closed Friday about 7% above their level before the first round. The real was about 5% stronger against the dollar than its level before the first round, the same source said. Reuters reported expectations of a sharp repricing following Lula's victory. In Asian trading after the result was announced, a Tokyo-listed exchange-traded fund tracking Brazil's Bovespa index fell about 15%.
In Serbia, student movement candidates received 52.7% of the vote, compared with 39.2% for the Serbian Progressive Party-led alliance of Aleksandar Vučić, according to results with counting nearly complete. Reuters via Investing.com said about 99% of votes had been counted when the tally was announced. The results put the student movement candidates clearly ahead of the opposing alliance. The result is part of the political developments seen in both countries this week. In Brazil, asset moves before the runoff had reflected bets on a change of government, followed by a decline in the Brazil ETF in Asia after Lula's victory.
In U.S. equities, the S&P 500 closed at 7,623.68 points on October 23, after closing at 7,757.17 points on October 21, according to EL7 data. In energy markets, Brent crude rose 3.1% on Friday, October 23, to $116.72 a barrel, its highest level since June 2022, according to the Associated Press. Prices fell on Monday morning, however, with Brent down 1.6% to $109.95 a barrel and U.S. benchmark crude down 2.2% to $101. The figures show the difference in oil's movement between Friday's close and Monday morning trading. The Associated Press said the oil decline came ahead of a busy week of corporate earnings and the Fed decision.
Economic data due includes the September advance report on durable goods orders, which the U.S. Census Bureau scheduled for release on October 27 at 8:30 a.m. local time. The full report for the same month is scheduled for release on November 3. On October 29 at 8:30 a.m. U.S. local time, the Bureau of Economic Analysis will publish its advance estimate of third-quarter GDP, alongside its September personal income and outlays report. The Associated Press also reported that the Personal Consumption Expenditures index, the Fed's preferred inflation measure, is expected to show inflation rising at a 3.7% rate in September. That compares with the Fed's 2% target.
Previous GDP data provide context for reading the awaited third-quarter figures. The U.S. Bureau of Economic Analysis said its third estimate showed real GDP growing at an annual rate of 2.2% in the second quarter of 2026. The economy had grown at an annual rate of 2.5% in the first quarter, following a revision. The advance estimate for the third quarter is due on October 29, alongside the September personal income and outlays report. The Fed meets on October 27 and 28, with its news conference scheduled for the second day.