Market Update: October 13, 2026
For illustrative purposes only. The graphic depicts a general investment approach and is not intended as personalized investment advice. Asset allocation and model selection will vary based on each client's objectives, risk tolerance, financial circumstances, and investment time horizon.
Global equities fell last week as a bond sell-off pushed Treasury yields to multi-decade highs. The S&P 500 slipped 0.25%, while Europe’s STOXX 600 dropped 1.11%; South Korea’s KOSPI gained 1.65% on record monthly exports driven by AI-related semiconductor demand.
The 10-year Treasury yield reached 5.35% before ending at 5.27%, and the 2-year yield closed at 4.82%. Rising borrowing costs, elevated energy prices, and geopolitical risk are making investors more cautious. Equity fund outflows widened, bond and money-market inflows hit record levels, and participation in the equity rally weakened.
Oil ended lower despite Middle East tensions and Gulf Coast production disruptions from Hurricane Isaias, with WTI at $91.11 and Brent at $102.25. Gold declined to $4,141 per ounce as the dollar strengthened to its highest level since April 2025.
Inflation remains the central issue. U.S. core PCE rose 0.2% month over month, while euro-area HICP accelerated to 3.8% on higher energy costs. Japan’s Tokyo core CPI also surprised to the upside. Meanwhile, U.S. labor data softened: payrolls grew just 29,000, unemployment rose to 4.2%, and job openings fell to a five-month low.
The Fed’s minutes reinforced a patient but restrictive stance, offering little expectation of near-term rate relief. Elevated bond-market volatility, which is reflected in the MOVE index, underscores growing sensitivity to fiscal, inflation, and policy risks.
This week, attention turns to September CPI, PPI, and major bank earnings from JPMorgan, Goldman Sachs, Wells Fargo, and Citigroup. Credit quality, deposit costs, loan growth, and consumer health will be key signals for the market’s next move.
A broader rally may require easing yields, contained high-yield spreads, and renewed small-cap participation.
The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness. All information and opinions expressed are subject to change without notice. Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.