SHARESIES · MARKET UPDATE · Week of 20 October 2026
Jacki Neumann, Head of Capital Markets

↑ WHAT'S UP — The ASX 200 gained 1% for the week while US markets fell, and the NZX 50 finished flat. US reporting season opened with the big banks: Goldman Sachs and Morgan Stanley beat forecasts, and results across the group suggest American consumers are in reasonable shape. Oil stayed high as conflict continued, with Brent crude ending the week around US$106 a barrel.

↓ WHAT’S DOWN — The S&P 500 fell 2% and the Nasdaq lost 4.5%, led by a sell-off in AI and chip stocks. The S&P 500 tech sector dropped 6.4% and the Philadelphia Semiconductor Index lost 11.4%, with CoreWeave plummeting 25% on concerns about credit risk, and Micron, SK Hynix and Samsung slid on rising competition and oversupply fears. Among the banks, JPMorgan missed on profit and revenue, and Wells Fargo’s revenue fell short.

! BIGGEST SURPRISES — US headline inflation rose above expectations to 3.7% in September, driven by fuel and energy costs. The 10-year Treasury yield jumped to 5.33%, then fell back to around 5.1% as AI stocks dropped and investors moved to safer assets. In Australia, employment fell by around 39,000 in September when economists expected a rise of 20,000. Unemployment rose to 4.7%, the highest level since late 2021. 

◎ WHAT TO WATCH — SpaceX, Netflix and General Motors report on Tuesday (US time), followed by Tesla, Meta and IBM on Wednesday. Also on Wednesday, RBA Deputy Governor Andrew Hauser speaks, and Transurban, Fletcher Building and Vulcan Steel hold their AGMs. BHP, the ASX, IAG and Auckland Airport meet on Thursday, and BHP, Woodside, Fortescue and Santos will also release quarterly updates during the week.

◈ BIGGER PICTURE — The financing of AI growth is still under scrutiny. The CEOs of Intel and Broadcom told a conference in Singapore that the cost of growth could become a bottleneck, while CoreWeave’s CEO pointed to setbacks for competitors trying to raise money through IPOs and debt. At the state level, central banks are leaning towards tighter policy: markets see about a 15% chance of a Fed hike in October, and RBNZ Chief Economist Conway said the October decision is “wide open” between a pause and a 25 basis point hike. CBA CEO Matt Comyn warned that growth is slowing and inflation remains too high, while Glencore’s secondary listing on the ASX, partly to reach domestic super funds, shows global companies still want access to Australian capital.

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