Market brief — October 29, 2026

In 30 seconds

• Yesterday, Wednesday, October 28, markets closed slightly higher, led by United States technology stocks.
• The Federal Reserve kept rates unchanged, but mixed artificial-intelligence earnings increased uncertainty around expensive technology shares.^[1][4]
• The next session could be more volatile as inflation, economic growth, the European Central Bank, and major technology results arrive together.

The figures from the last session

These are Wednesday’s closing levels, not live prices for Thursday.

• CAC 40: 7,886.96, unchanged; French equities paused.
• Euro Stoxx 50: 6,167.81, up 0.05%; regional markets were almost flat.
• DAX: 25,704.02, up 0.44%; German shares outperformed.
• S&P 500: 7,743.98, up 0.28%; investors welcomed the Fed decision.^[9]
• Nasdaq: 26,549.85, up 0.27%; technology gains remained modest.^[9]

The Federal Reserve maintained its target range at 3.75%–4.00% in a 10–2 decision.^[4]

The subject of the day, explained

The main issue is whether artificial-intelligence investment can generate enough profits to justify large spending. Microsoft’s strong cash generation supported its shares, while Alphabet’s earnings disappointment reportedly erased about $396 billion in market value after hours.^[3]

At the same time, the Federal Reserve held rates steady. Lower expected rates generally help shares because future profits are discounted less heavily. The opposite pressure remains: if inflation stays high, rates may remain restrictive for longer. In simple terms, companies must offer stronger growth when safe investments pay more.

The analysis of the day

Wednesday’s advance was positive but narrow in magnitude. The Nasdaq rose only 0.27%, while the Euro Stoxx 50 gained 0.05%. The scanner also shows a mixed market: 53% of tracked shares are above their 200-day average, but only 47% are above their 50-day average. That suggests a market with reasonable long-term support, but weaker short-term breadth.

The Federal Reserve decision removed one immediate source of uncertainty. However, the two dissenting votes for a rate increase and continued concern about inflation limit the relief.^[1] The market is therefore testing two competing messages. Economic conditions remain solid, but expensive growth companies must prove that artificial-intelligence spending will produce cash earnings.

The most likely near-term scenario is wider price swings rather than a clear market direction. Strong cash flow from technology companies could revive the rally. Weak results, higher inflation, or firm central-bank language could reverse it. A useful confirmation would be sustained gains in both the S&P 500 and broader market breadth. A failure of the Nasdaq to hold its Wednesday close of 26,549.85 would signal weaker short-term momentum.

The word of the day

Breadth measures how many shares participate in a market move. A rise supported by many companies is generally more robust than one driven by only a few large stocks.

What the scanner sees

• Fortive (FTV): Machinery. The score is exceptional at 46. The share price rose through its highest level of the previous 20 sessions, with higher volume and a strengthening trend. This supports the broader industrial side of the market, not only artificial intelligence.
• GE HealthCare Technologies (GEHC): Healthcare. The score is exceptional at 40, following a 6.6% gap higher. The move confirms strong interest in selected growth and healthcare shares, although the size of the gap raises short-term volatility.
• Nasdaq (NDAQ): Financial services. The score is exceptional at 40. The share price exceeded its previous 20-session high, with stronger volume. Its strength shows that the market theme also reaches financial-market infrastructure.

These signals partly confirm a constructive market. However, utilities, real estate, energy, healthcare, and industrials appear alongside technology. The advance is therefore not purely an artificial-intelligence trade.

The agenda

• United States core personal-consumption-expenditures inflation: The key inflation measure could alter expectations for future Federal Reserve policy.^[6]
• United States third-quarter gross domestic product: A strong figure could support profits, but also keep interest rates higher for longer.^[6]
• European Central Bank decision and press conference: Guidance on inflation and further tightening could move European bonds and equities.^[6]
• Amazon and Intel results: Their figures will test demand for cloud services, chips, and artificial-intelligence infrastructure.^[1]

Risks to watch

• Disappointing technology earnings could expose the high spending required for artificial-intelligence expansion.^[1][3]
• Higher oil prices or stronger inflation could delay expected rate relief and pressure equity valuations.^[2]

The number to remember: 53% above the 200-day average, showing long-term support but only moderate market breadth.