Market brief — October 28, 2026

In 30 seconds

• Yesterday, Tuesday, October 27, markets closed higher: technology led, with the Nasdaq up 1.18% and the DAX up 0.71%.
• The rebound reflected optimism about artificial-intelligence earnings, lower oil prices and expectations of stable central-bank rates.^[1][3]
• The advance could continue if earnings confirm strong AI demand, but higher inflation and central-bank guidance remain key risks.^[4][7]

The figures from the last session

• CAC 40: 7,887.14, up 0.51%; a measured European rebound.
• Euro Stoxx 50: 6,164.69, up 0.79%; broad regional strength.
• DAX: 25,590.77, up 0.71%; technology and earnings helped.
• S&P 500: 7,722.60, up 0.60%; gains ahead of the Federal Reserve.
• Nasdaq: 26,477.81, up 1.18%; technology clearly outperformed.

These figures are Tuesday’s closing levels, not live prices for Wednesday. The broader European session benefited from strong earnings and relief from lower crude prices, although HSBC’s revenue shortfall weighed on sentiment.^[3]

The subject of the day, explained

The main focus is the Federal Reserve’s interest-rate decision, due Wednesday, alongside major technology results. Markets widely expect the Federal Reserve to leave rates unchanged at 4.0%.^[7] Alphabet and Microsoft are scheduled to report quarterly results, with investors seeking evidence that artificial-intelligence investment is generating sufficient revenue.^[2][7]

Stable rates support shares because they preserve the value of future corporate profits. However, September inflation was hotter than expected. That could limit the Federal Reserve’s willingness to signal future reductions.^[4] In simple terms, when risk-free savings remain attractive, companies must deliver stronger growth to justify higher share prices.

The analysis of the day

Tuesday’s gains were positive but not fully broad-based. The Nasdaq rose twice as much as the CAC 40, showing that technology remained the main engine. The scanner also describes a mixed market: 53% of tracked stocks stand above their 200-day average, while only 47% are above their 50-day average. That combination suggests reasonable long-term participation, but weaker short-term breadth.

The news supports part of the rally. Strong artificial-intelligence demand lifted Asian technology shares, while SK hynix reported a sharp increase in quarterly operating profit and announced additional shareholder returns.^[5] European shares also benefited from lower oil prices and several strong earnings reports.^[3] Yet hotter inflation creates a contradiction. It supports earnings-sensitive sectors less than technology enthusiasm supports high-growth shares.

The most likely near-term scenario is continued volatility with a technology bias. Strong results from Microsoft and Alphabet, combined with a neutral Federal Reserve message, would support the rebound. A cautious rate outlook, weak guidance or signs that AI spending is not producing revenue would challenge it. The Nasdaq’s 26,477.81 close is the key reference from Tuesday, not a forecast.

The word of the day

Market breadth measures how widely a market movement is shared across individual stocks. A rise supported by many companies is generally more robust than one driven by a small group of large technology firms.

What the scanner sees

• Fortive (FTV): Machinery. The scanner gives it an exceptional score and detects a move above its highest level of the past 20 sessions, rising volume and improving trend indicators.
• S&P Global (SPGI): Financial services. It receives an exceptional score, with stronger trading activity and indicators showing a persistent upward trend, despite a small downward opening gap.
• Range Resources (RRC): Energy. It receives an exceptional score, with a 5.3% upward gap, a new 20-session high and increased volume.

These signals partly confirm the day’s theme. Energy and financial services show that interest extends beyond technology. However, the limited market breadth means the scanner does not yet prove a broad-based advance.

The agenda

• Federal Reserve rate decision, Wednesday: The statement and economic projections could move bond yields, growth shares and the dollar.^[4][7]
• Microsoft and Alphabet earnings, Wednesday: Results will test whether AI spending is translating into sales and profits.^[2][7]
• European Central Bank decision, Thursday: Markets expect borrowing costs to remain unchanged; guidance will shape European shares and the euro.^[3]
• Bank of Japan decision, later this week: Any change in policy expectations could affect the yen and global risk appetite.^[2]

To watch

• Inflation and rates: Persistent price pressure could produce a more restrictive Federal Reserve message, weighing on technology valuations.^[4]
• AI earnings quality: Disappointing revenue growth or higher investment costs could reverse the technology-led rebound.^[2][7]

The number to remember: 1.18%—the Nasdaq’s gain on Tuesday, showing that technology remained the strongest major market segment.