Weekly Market Commentary

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Week of Oct. 19 through Oct. 23, 2026

The Standard & Poor's 500 index slipped 0.5% this week, led by a slide in communication services amid worries over corporate spending on artificial intelligence.

The S&P 500 ended the week at 7,623.68. With just one week remaining in the month the market benchmark is down 0.4% for October but up 11% this year.

Worries ramped up over increasing capital expenditures as more companies released quarterly results, especially in relation to artificial intelligence.

Facebook parent Meta Platforms (META) reported Q3 results above views and raised the bottom end of its guidance range for 2026 capital expenditures. Tesla (TSLA) posted better-than-expected Q3 earnings but elevated operating expenses for AI projects "dragged meaningfully" on the electric vehicle maker's operating profit margin, Truist Securities said in a note to clients.

The week's drop came on declines in just four of the S&P 500's 11 sectors. Communication services tumbled 6.2% and industrials fell 1.9%. Technology and materials also edged lower.

AT&T (T) had the largest percentage drop in communication services, falling 11%. The telecommunications company raised its full-year earnings outlook following stronger-than-expected third-quarter results, but its postpaid phone subscriber growth missed projections.

Meta was also hit hard, sliding 9.4% on the week. The company's Q3 adjusted earnings per share and revenue topped analysts' expectations but the stock was weighed down by concerns about its increasing capital expenditures related to AI.

Comfort Systems USA (FIX) had the largest percentage drop in the industrials sector as well as the overall S&P 500, falling 19%. The company reported Q3 earnings and revenue above year-earlier results and analysts' mean estimates, but it announced plans for Chief Financial Officer Bill George to retire.

Gainers were led by the energy and health care sectors, up 1.55% and 1.45%, respectively. Real estate, utilities, financials, consumer discretionary and consumer staples also edged higher.

The energy sector's advance came as crude futures rose amid geopolitical tensions.

SLB (SLB) was the best performer in the energy sector, climbing 7.2%. The oilfield services company reported better-than-expected third-quarter results as a surge in North America revenue and momentum in its data center business offset weakness in its Middle East operations.

Intuitive Surgical (ISRG) was among the top gainers in health care, rising 6%. The company reported Q3 adjusted earnings and revenue above analysts' consensus views. Meanwhile, Intuitive Surgical adjusted its global da Vinci procedure growth target range for 2026 and reported a $450 million settlement charge that outweighed its Q3 beat.

Next week, Verizon Communications (VZ), Visa (V), Coca-Cola (KO), Boeing (BA), Google parent Alphabet (GOOG, GOOGL), Microsoft (MSFT), GE Vernova (GEV), Amazon.com (AMZN), Eli Lilly (LLY), Mastercard (MA), Intel (INTC), Merck (MRK), Caterpillar (CAT), ExxonMobil (XOM), Chevron (CVX) and AbbVie (ABBV) are among companies releasing quarterly results.

Economic data will include September personal consumption expenditures and the advance estimate of Q3 gross domestic product. There will also be a two-day meeting of the Federal Reserve's Federal Open Market Committee that concludes Wednesday.

Provided by MT Newswires.