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Market Recap
WEEK OF OCT. 12 THROUGH OCT. 16, 2026
The S&P 500 index fell 1.95% last week, weighed down by a slide in the technology sector amid questions over artificial intelligence funding. The S&P 500 ended Friday's session at 7,659.44. The market benchmark is now up 0.1% for the month and 12% this year.
Worries about AI funding ramped up as concerns mounted about CoreWeave's (CRWV)debt and credit risk. CoreWeave's shares fell 25% this week as yields on its debt continued to climb. Investors are worried about the impact of higher borrowing costs on some of the most highly leveraged companies in the AI space.
Economic data last week showed US industrial production increased more than expected in September as manufacturing output rebounded despite weakness in the auto component. Industrial output grew 0.7% last month, following a revised 0.1% gain for August, according to Federal Reserve data. The consensus estimate was for a smaller 0.4% increase in September in a survey compiled by Bloomberg.
Just four of the S&P 500's 11 sectors fell last week, but their losses were large enough to outweigh the other seven sectors' gains. The technology sector slid 6.4%, followed by a 1.9% drop in consumer discretionary, a 1.6% decline in communication services and a 0.9% slip in industrials.
Ciena (CIEN) and Coherent (COHR) were the hardest-hit stocks in the technology sector as well as the overall S&P 500 for the week. The stocks tumbled 26% each amid investors' concerns about potential impacts to companies tied to AI infrastructure.
Tesla (TSLA) was among the top decliners in consumer discretionary, falling 7.3%. The National Highway Traffic Safety Administration has opened an investigation into the electric vehicle maker over claims that its driverless taxis have exceeded posted speed limits in active school zones, according to a document on the NHTSA website.
On the upside, consumer staples and energy rose 5% each, followed by a 3.4% gain in health care, a 2.5% increase in materials and a 2% rise in utilities. Financials and real estate also edged higher.
In consumer staples, Kimberly-Clark (KMB) was among the top gainers, climbing 8.2% as the company released preliminary Q3 adjusted earnings per share and net sales above analysts' mean estimates. The company also reiterated its full-year guidance.
The energy sector's advance came as crude oil futures rose. Gainers included shares of ConocoPhillips (COP), up 9.3%, and APA Corp. (APA), up 7.1%.
Quarterly reports this week are expected from companies including Meta Platforms (META), Tesla, Procter & Gamble (PG), Union Pacific (UNP), American Express (AXP), GE Aerospace (GE), Netflix (NFLX), 3M (MMM) and General Motors (GM).
Economic data will include September housing starts and pending home sales, as well as the early estimate of October's purchasing managers' indexes.
