Wall Street heads into what analysts are calling the biggest week of the year under pressure, after the Dow Jones Industrial Average tumbled 652.82 points, or 1.23%, on Friday October 23 to close at 52,215.16. The selloff was driven by a combination of rising oil prices, persistent doubts about artificial intelligence valuations, and caution ahead of a dense calendar of market-moving events.
The Federal Reserve's two-day FOMC meeting runs October 27-28, with markets not expecting a change to the current 3.75% federal funds rate target. Fed Chair Kevin Warsh is scheduled to hold a press conference on Wednesday. The 10-year Treasury yield retreated to just below 5% on Friday as AI-driven tech selling pushed investors toward the safety of government bonds, a signal of how fragile sentiment has become ahead of the meeting.
Bitcoin added to the risk-off tone, slipping to $81,307 after being rejected at the $85,000 level, with traders bracing for volatility around the FOMC decision. The cryptocurrency's pullback underscored broader caution across asset classes.
On the earnings front, Microsoft, Alphabet, Amazon and SanDisk are all scheduled to report during the week, creating a gauntlet of results from the companies most exposed to AI spending scrutiny. An Oracle AI event is also on the calendar. Across the Atlantic, the UK delivers its Autumn Budget, while the European Central Bank and Bank of Japan both issue policy decisions, making the week a convergence of central bank action not seen in recent memory.
