Opening Comment — Friday, October 23, 2026
DJIA: 52,867.98, up 11.89
S&P 500: 7,663.43, down 93.74
NASDAQ: 26,008.86, down 694.00
Stocks lower following Iran war concerns
Stock futures are lower Friday morning following continued concerns regarding the Middle East. Investors are awaiting today’s release of October purchasing managers’ indexes (PMIs) and finalized October reading of consumer sentiment from the University of Michigan. Next week, the spotlight will be on the Federal Open Market Committee meeting, along with several key economic releases, including the advance reading of third-quarter gross domestic product (GDP) and September’s personal income and spending data. As of 7:24 AM ET, the Dow is decreasing 0.6%, while the S&P 500 is down 0.3%. The Nasdaq 100 is falling 0.1% relative to fair value on the GLOBEX.
U.S. equities were mostly lower on Thursday amid heightened concerns on artificial intelligence (AI) investment spending and its effect on the broader economy. Initial jobless claims fell, though continuing claims for the week prior picked up. Meanwhile, the Conference Board’s Leading Economic Index showed little change in September, against expectations for a 0.1% decline. The Dow was little changed, while the tech-heavy Nasdaq Composite fell 2.6%. The S&P 500 decreased 1.2% with five of 11 sectors finishing in negative territory. The Consumer Staples sector was the top performer, rising 3.1%, while both the Communication Services and Information Technology sectors were the bottom performers, falling 3.0%.
Technical Analysis:
As of midday Thursday, the S&P 500 is still in an uptrend. Resistance is at the 50-day moving average of 7,703 and the recent high of 7,845, while support lies at the 200-day moving average of 7,288.
On the data front, the preliminary reading of S&P Global’s composite PMI for October is expected to come in at 57.6 versus the prior month’s 58.4, with the manufacturing and services PMIs forecasted at 55.5 and 58.0, respectively, compared to the prior month’s 55.9 and 58.8, respectively. The finalized October reading of consumer sentiment from the University of Michigan is expected to come in unchanged from the preliminary reading of 46.3, while one-year and 5-10-year inflation expectations are expected to come in at 4.7% and 3.5%, respectively, both similar to the preliminary readings. The Kansas City Fed will release their Services Survey for October, with the composite index expected to come in at 1, up from the prior month’s reading of 0.
Across the pond, European stocks are lower in mid-day trading as the U.K. retail sales weakened in September. The preliminary reading of manufacturing PMIs for France and the eurozone declined more than expected in October, coming in at 49.3 and 52.4, respectively, while Germany and the U.K.’s manufacturing PMIs unexpectedly rose to 54.2 and 52.8, respectively. Meanwhile, services PMIs in France, Germany, and the eurozone fell more than forecasted, arriving at 48.4, 51.7, and 51.7, respectively, while the U.K.’s services PMI unexpectedly rose to 53.1. Meanwhile, the European Central Bank’s (ECB’s) gauge of one-year inflation expectations rose to 3.1% in September, while three-year inflation expectations remained unchanged at 2.9%, both in line with expectations.
Overnight in Asia, stocks were mixed as Japan’s nationwide headline and core Consumer Price Indexes accelerated more than expected to 2.1% and 2.4% year-over-year (YOY) in September. The country’s nationwide department store sales rose 4.2% YOY in September, while Tokyo department store sales accelerated to 9.3%. Meanwhile, Japan’s preliminary October manufacturing PMI fell to 53.3 from 54.1 previously, while the services PMI rose to 52.0 from 51.3. Australia’s preliminary manufacturing PMI edged up to 49.7 from 49.6, while the services PMI fell sharply to 47.8 from 51.9.
In FOREX trading, the U.S. dollar is slightly higher as investors await U.S. PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.5% higher at $100.98/barrel and Brent crude oil is up 1.3% at $114.61/barrel amidst escalating tensions in the Middle East.
In the metals complex, gold is 0.1% lower at $4,022.25/ounce following a strengthening U.S. dollar.