US markets closed out the week on a downbeat note on Friday, October 23, 2026, as rising oil prices and renewed inflation worries weighed on investor sentiment. With markets closed over the weekend, Sunday brings a chance to take stock of a choppy week — and to look ahead to a Federal Reserve decision due on Wednesday, October 28.
Friday's closing levels: The Dow Jones Industrial Average fell 1.23% to 52,215.16, giving back more than 650 points in a single session. The S&P 500 slipped 0.52% to 7,623.68, while the Nasdaq Composite eased 0.21% to 25,955.34.
The week in review: For the full week, the Dow managed a 0.41% gain — its third straight weekly advance — even after Friday's drop. The S&P 500 lost 0.47% for the week, its second straight weekly decline, and the Nasdaq fell 0.71%, also a second consecutive weekly loss. The S&P 500 now sits about 2.5% below its record close of 7,818.93 set on October 6, while the Nasdaq is roughly 6% below its October 6 record of 27,599.79.
What drove the sell-off: Two forces collided late in the week. First, worries about how artificial intelligence spending is being financed rattled technology shares on Thursday, when the Nasdaq suffered its worst one-day fall since June. Then on Friday, climbing oil prices pushed nearly three out of every four S&P 500 stocks lower, as traders worried that higher energy costs could keep inflation elevated.
Why it matters: With the 10-year Treasury yield sitting just under 5% and the VIX volatility gauge finishing the week at 19.45, investors are watching whether energy-driven inflation complicates the Federal Reserve's path. The Fed's policy decision on October 28 will be closely read for any signal on the timing of future rate cuts. Gold also fell about 4% on the week, alongside equities.
What to watch next week: Corporate earnings continue, along with key economic data including GDP and inflation readings. Traders will also keep an eye on oil prices and any developments around the Strait of Hormuz, a major global shipping route for oil.
This article is for information only and is not financial advice.
Sources: NovelStartup, Palma Futures, GAMSG Weekly Market Insights, Motley Fool.
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