Global financial markets experienced notable shifts this week, with U.S. stock exchanges closing lower on Thursday, October 29, 2026, marking an end to a three-day rally. The downturn was largely propelled by a significant sell-off in technology shares following disappointing earnings reports, influencing the broader stock market today. Canada\’s main index also registered a flat performance amidst these global movements.
On Thursday, the Dow Jones Industrial Average (DJI) decreased by 0.3%, or 132.54 points, settling at 52,342.56. The S&P 500 also edged down by 0.3%, closing at approximately 7,720.4. The tech-heavy Nasdaq Composite recorded the most substantial loss, falling 1.4%, equivalent to 365.13 points, to conclude the day at 26,184.72. This slump was primarily attributed to weaker third-quarter 2026 earnings results from several leading technology and artificial intelligence (AI) firms.
Alphabet Inc., a major player in internet search and AI, saw its shares plummet by 12.69% after reporting adjusted earnings of $2.12 per share, which missed the Zacks Consensus Estimate by nearly 28%. The company also disclosed a negative free cash flow of $9.07 billion. Other technology companies were similarly affected, with ServiceNow Inc. shares dropping 26.9% and Fortinet experiencing a 20.1% decline on Thursday. The downward trend continued into early Friday, October 30, with U.S. stock futures for the Nasdaq 100 down 2.19% and S&P 500 futures down 0.97%, as Amazon\’s Q3 results fell short of expectations and Intel issued a grim outlook, further fueling concerns about the resilience of the AI investment trend.
Economic Pressures and Geopolitical Dynamics
Beyond corporate earnings, broader economic indicators and geopolitical factors contributed to market unease. The U.S. economy demonstrated robust growth in the third quarter of 2026, expanding at an annualized rate of 3.4%. This figure surpassed the Zacks Consensus Estimate of 3.2% and represented an acceleration from the 2.2% growth observed in the second quarter. However, persistent inflation remains a key concern, with the personal consumption expenditure (PCE) price index rising 0.5% in September, and the year-over-year headline PCE inflation standing at 3.6%. Core PCE, excluding volatile food and energy components, increased by 2.5%.
Financial markets are also grappling with soaring long-duration Treasury bond yields, which have reached nearly quarter-century highs. The U.S. federal deficit widened to $1.99 trillion for the fiscal year 2026, marking a 12% increase from the prior year. Additionally, geopolitical tensions in the Middle East have pushed oil prices higher, with Brent crude futures reaching $116.70 per barrel and West Texas Intermediate (WTI) crude futures trading at $103.52 per barrel on Friday morning. The upcoming midterm elections on November 3, with the potential for a divided Congress, also introduce uncertainty regarding future debt-ceiling discussions.
Canada\’s Market Reacts Amidst Shifting Global Ties
The Canadian stock market also experienced a subdued performance on Thursday, October 29, 2026. The S&P/TSX Composite Index closed almost unchanged, recording a minor dip of 0.04% to 36,249.03 points. Losses in the mining sector, including declines for Agnico Eagle (4.1%), Wheaton Precious Metals (2.7%), and Barrick (2.6%), along with technology stocks like Celestica (5.8%) and Shopify (0.7%) — influenced by the U.S. tech sell-off — were largely counterbalanced by gains from major Canadian banks. RBC, TD Bank, BMO, Scotiabank, and CIBC all reported increases ranging from 0.6% to 1.2%.
In corporate news, Air Canada\’s third-quarter net income dropped by 47% year-over-year to $139 million, despite achieving record operating revenues of $6.98 billion, primarily due to escalating fuel costs. Conversely, Magna International Inc. reported robust third-quarter 2026 results, with adjusted EBIT increasing by 11% to $683 million.
From an international perspective, these market movements underscore the interconnectedness of global economies. The U.S. tech sector\’s performance directly influenced Canadian technology shares, demonstrating how national markets ripple across borders. Rising oil prices, fueled by Middle East tensions, impact energy costs and inflationary pressures globally. Furthermore, the Bank of Canada\’s decision on October 28, 2026, to raise its key interest rate for the first time since 2023 highlights a broader trend among central banks globally to manage inflation, with implications for international borrowing costs and economic growth. Canada\’s active efforts to strengthen economic ties with the European Union, evidenced by the ongoing summit in Montreal focusing on digital trade and academic exchanges, also reflect strategic shifts in global trade relations amidst ongoing tensions with the United States. A notable shift in investment patterns saw Canadian investors withdraw a record $31 billion CAD from U.S. stocks in July 2026, particularly from large technology companies, after substantial investments earlier in the year.
As markets move into the final months of the year, investors will be closely watching for further corporate earnings reports, updates on inflation metrics, and any shifts in central bank monetary policies. Geopolitical developments, particularly in the Middle East, along with the outcome of the U.S. midterm elections and their potential impact on fiscal policy, are expected to continue shaping the global economic landscape.
Image: Ilustracion generada con IA
Sources consulted
- CNN: Shares of Google’s parent company just had their worst day ever. Here’s what it means
- Reuters: Nasdaq futures tumble as Amazon, Intel results deepen AI spending woes
- Yahoo Finance: Alphabet loses $482 billion in market value, the biggest drop in its history
Bruno Kadez is a sports writer focused on performance, competition, and athlete insights. He covers major sporting events, player analysis, and trending stories across leagues. His reporting captures both the data and the emotion behind the game.
