US Markets Highlights — Oct 18, 2026 | Aivina
October 18, 2026
US markets ended lower as an extended selloff in semiconductor and megacap technology stocks dragged down the S&P 500 and Nasdaq. While a rotation into defensive sectors briefly buoyed blue-chip equities, elevated inflation figures continue to weigh on overall market sentiment. Market participants remain cautious ahead of upcoming FOMC policy decisions amid lingering rate and valuation concerns.
Highlights
- Tech stocks drop
- Defensives rally strongly
- S&P 500 slides
Macro Overview
Inflation
September CPI rose 3.7% year-over-year, driven by rising energy prices, keeping consumer inflation elevated above the Fed's 2% target.
Interest Rate Outlook
Following a rate hike to 3.75%-4.00% in September, sticky inflation has markets divided over an additional rate hike before year-end.
Risk Sentiment
bearish
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