EL7.AI
Macro EconomyMedium•26 October 2026•
4 min read

S&P 500 Rises 0.9% as Investors Await Results from a Third of Its Companies and Rate Meetings

Key Facts

1The S&P 500 rose 0.9% on October 26, putting it within 1.6% of its record high.
2About one in three S&P 500 companies is scheduled to report results during the week.
3Markets priced in an 80% chance of a U.S. rate hike in December.
4The Associated Press forecast PCE inflation at 3.7% in September, versus 3.4% in August and a 2% target.
5Brent futures rose 6.2% the previous week to their highest weekly close since mid-2022.

The S&P 500 rose 0.9% on Monday, October 26, recouping losses from the previous week and coming within 1.6% of the record high it reached earlier this month. The advance opened a busy week of corporate earnings, central bank meetings and U.S. inflation and growth data. The Associated Press said about one in three companies in the index is scheduled to report quarterly results during the week. Attention is focused on major technology companies, whose results could show whether spending on artificial intelligence is translating into profits and productivity. Investors are also watching to see whether companies deliver strong earnings growth, the agency said.

The improvement extended to other markets: the MSCI World Index edged higher on Monday after falling nearly 1% the previous week, while the European STOXX 600 rose 0.4%. That performance will be tested by meetings of five major central banks scheduled for the week, according to a Reuters report, along with data that could affect rate, inflation and growth expectations. The Federal Reserve begins its meeting on October 27 and 28, with a news conference on the second day. The European Central Bank meets on October 28 and 29, with a news conference after the second day's meeting. The Bank of Japan's monetary policy meeting is scheduled for October 29 and 30.

In the United States, investors expected the Federal Reserve to leave interest rates unchanged at its October meeting, after raising them at its September meeting, the Associated Press reported. But market pricing pointed to an 80% chance of a rate hike in December, according to Reuters. That puts this week's decision against a backdrop of differing expectations: a near-term hold and possible tightening later. Investors are watching the personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge. The Associated Press estimated that the index would reach 3.7% in September, up from 3.4% in August, against an inflation target of 2%. Reuters forecast core inflation at 3.1% in September, with price pressures remaining elevated.

Attention is also turning to third-quarter gross domestic product figures, with the advance estimate due on October 29 at 8:30 a.m., alongside September personal income and spending data, according to the U.S. Bureau of Economic Analysis. The Associated Press forecast that the economy grew 1.7% from July to September, compared with 2.2% growth in the second quarter. A Reuters report estimated annualized third-quarter growth at 3.2%. Real gross domestic product grew at an annual rate of 2.2% in the second quarter, after 2.5% in the first quarter, according to the bureau. These estimates put economic activity alongside inflation at the center of markets' focus on the monetary policy outlook.

Technology earnings are another focus this week: Alphabet and Microsoft report quarterly results on Wednesday, followed by Amazon on Thursday, the Associated Press said. Investors are looking for signs that AI-related spending can support profits, as companies face pressure to show strong earnings growth. The results could offer further clues about whether that spending is delivering the profits and productivity its proponents promised, the agency said. With about a third of S&P 500 companies reporting within a few days, the market will receive a dense flow of information. The performance picture will become clearer as results arrive throughout the week.

Oil remained a parallel focus for markets, with prices retreating on Monday from elevated levels. Oil fell about 1.8% to $114.6 a barrel after reports that Qatari mediators were in Tehran, according to Reuters. The decline followed a 6.2% jump in Brent futures during the previous week to their highest weekly close since mid-2022. Reuters linked the previous week's rise to growing supply concerns. Oil's trajectory therefore remained tied to regional tensions and diplomatic efforts, as markets monitored their effects alongside rate decisions and economic data.