US Stocks Waver on Slowest Trading Day in 2026: Markets Wrap

(Bloomberg) — A selloff in chipmakers left stocks wavering ahead of the earnings season, with traders also gearing up for this week’s inflation data that will be key in shaping the Federal Reserve outlook.

The group of chip giants posted its longest retreat since July, weighing on the S&P 500 despite gains in most of its firms. While trading volume in US equities was the lowest in 2026, the stock benchmark remained near a record as bets on solid corporate results defied elevated oil prices and bond yields. Treasury futures fluctuated, with the cash market closed for Columbus Day.

Wall Street’s equity bull run completed its fourth anniversary, with the S&P 500 up nearly 120% from the 2022 bottom. And investors are bracing for high-stakes corporate results that will be crucial to sustaining the rally. Profit resilience helps explain why stocks have remained so strong, said Bret Kenwell at eToro.

“Growth has been powerful enough to keep valuations in check and allow investors to look past higher yields, interest rates and inflation,” he added. “Another strong quarter could reinforce the bull narrative intact into year-end, while a disappointment could catalyze a broader pullback.”

While this week’s inflation data could be a near-term volatility trigger, the new earnings season may play a bigger role in shaping the market’s momentum into year-end, according to Chris Larkin at E*Trade from Morgan Stanley.

“Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season,” said Goldman Sachs Group Inc. strategists led by Christian Mueller-Glissmann. They raised their three-month view on stocks to overweight.

The earnings season gets underway Tuesday, when Goldman Sachs, JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. report results. Bank of America Corp. and Morgan Stanley’s figures are due on the following day.

S&P 500 firms are estimated to post a 25% jump in third-quarter profits compared with a year earlier, data compiled by Bloomberg Intelligence show.

Meantime, Wednesday’s consumer price index is likely to be the most-important data the Fed will see before its October meeting, according to Glenmede’s Jason Pride and Michael Reynolds. Barring a stronger-than-expected report, the central bank will probably take a patient approach to its next rate hike, they added.

Fed Bank of Cleveland President Beth Hammack said smaller, more frequent adjustments to policy can help inflation expectations remain anchored, but she stopped short of backing a rate increase this month.

Corporate Highlights:

Meta Platforms Inc. released a long-awaited artificial-intelligence model, a milestone that will test whether its multibillion-dollar push to rebuild its AI organization has improved its technology enough to compete among leaders. Microsoft Corp. is gearing up to install the latest version of its own chips in data centers, with the aim of powering its AI software using mostly homegrown hardware. Starbucks Corp. said it’s not buying Chipotle Mexican Grill Inc., seeking to tamp down speculation about what could have been one of the restaurant sector’s largest-ever deals. Bumble Inc. jumped as the Wall Street Journal reported the dating-app firm is in advanced talks to be taken private for around $1 billion. Kroger Co. plans to cut more than one-third of its corporate headcount as the grocer seeks to simplify operations and compete more effectively under new Chief Executive Officer Greg Foran. Some of the main moves in markets:

Stocks

The S&P 500 was little changed as of 4 p.m. New York time The Nasdaq 100 fell 0.7% The Dow Jones Industrial Average rose 0.4% The MSCI World Index was little changed Currencies

The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.4% to $1.1154 The British pound fell 0.2% to $1.3205 The Japanese yen fell 0.2% to 158.64 per dollar Cryptocurrencies

Bitcoin fell 0.8% to $82,897.85 Ether fell 0.6% to $2,521.65 Bonds

Germany’s 10-year yield was little changed at 3.48% Britain’s 10-year yield was little changed at 5.44% Commodities

West Texas Intermediate crude rose 1.5% to $93.23 a barrel Spot gold fell 0.6% to $4,168.35 an ounce –With assistance from Lu Wang.

©2026 Bloomberg L.P.