Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
News
Tuesday, October 20, 2026
What’s happening: The Nasdaq settled higher on Monday amid gains in chip and other AI-related stocks.
What happened: Tech stocks, including chips and AI stocks, recovered on Monday after recording sharp losses last week, with investors awaiting earnings reports later this week.
Meanwhile, bank stocks moved lower following earnings releases last week, which weighed on the Dow Jones index.
Why it matters: The S&P 500 and Nasdaq 100 ended last week with their biggest weekly losses since late June amid concerns around high AI-infrastructure investments.
Tech stocks recovered sharply on Monday, sending the Philadelphia Semiconductor Index higher by 1.6%, following eight straight sessions of decline, its longest losing streak since October 2008.
Bank stocks, including Morgan Stanley, Bank of America and Wells Fargo, settled lower on Monday, following the release of earnings reports last week.
Shares of Amazon.com jumped around 5% on Monday after Morgan Stanley analysts named the company its “top pick.” Tesla’s stock also surged about 3.8% ahead of its quarterly results.
On the economic data front, the US NAHB/Wells Fargo housing market index dipped to 29 in October, from 32 in the previous month. Homebuilder sentiment fell to the lowest level since June 2012.
Consumer discretionary, information technology and communication services stocks were among the top performers on Monday, while utilities and real estate sectors were heavily shorted.
Crude oil prices settled higher after recording losses earlier during the session, following renewed attacks on Saudi Arabia’s energy and military facilities.
The Nasdaq 100 jumped 341.79 point, or 1.17%, to close at 29,529.34 on Monday, while the S&P 500 rose 0.41% to 7,690.73. The Dow Jones index bucked the trend, slipping 0.07% to settle at 51,966.03.
What to watch: Investors will keep an eye on upcoming key earnings reports, with Meta due to report earnings on Wednesday and Tesla and SpaceX scheduled for Tuesday.
Data on housing starts (1630 UAE Time), building permits (1630 UAE Time) and pending home sales (1800 UAE Time) from the US will be released today. Housing starts in the US, which fell 2.6% to an annualised rate of 1.275 million units in August, are expected to rise to 1.31 million units in September. Analysts expect building permits in the US to decline 0.7% in September following a 2.1% downturn in August. US pending home sales, which gained 0.3% in August, are expected to decline 0.5% in September.
Context: The GBP/USD forex pair recorded gains on Monday, while pound reached a new 17-month high versus the euro.
Details: The euro recorded losses amid violent clashes between the police and protesters across France and other European nations, which raised concerns over political stability in the region.
Meanwhile, data released last week showed that the UK’s economy expanded stronger-than-expected in August.
The British pound surged to a 17-month high versus the euro on Monday with recent upbeat economic data and easing concerns around the UK’s fiscal outlook provided a boost to the GBP.
Weakness in the US dollar also lent support to the GBP/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell over 0.1% to 101.87 this morning.
The GBP/USD forex pair rose around 0.2% to 1.3326 this morning, while the EUR/GBP pair slipped to 0.8426.
What to watch: Data on inflation rate, PPI and retail price index from the UK will be released on Wednesday. The UK’s annual inflation rate, which accelerated to 3.1% in August from 2.9% in the previous month, is expected to rise further to 3.4% in September. Analysts expect factory gate prices for UK-manufactured goods to surge by 4% year-over-year in September following a 3.7% gain in August. The retail price index, which climbed by 3.4% year-over-year in August, are expected to surge by 3.9% in September.
Other Markets: Asian indices traded mostly lower this morning, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index down by 0.62% and 0.94%, respectively, and China’s CSI 300 up by 0.01%.
Russia’s President Vladimir Putin proposed a three-way summit with US President Donald Trump and China’s President Xi Jinping to negotiate an end to the ongoing conflict in Ukraine. The news sent the USD/RUB forex pair lower in forex trading this morning.
Canada’s headline inflation rate accelerated to 3.1% in September from 3.0% in the previous month. The latest reading coming in below market estimates of 3.2% exerted pressure on the USD/CAD forex pair.
The People’s Bank of China maintained its key lending rates at record lows for the 17th consecutive month, which sent the USD/CNY pair lower in forex trading this morning.
Israel’s unemployment rate rose to 3.0% in September from 2.8% in August. The employment rate accelerating to 60.3% from 60.0% in August exerted pressure on the USD/ILS forex pair.
Indonesia’s foreign direct investment jumped 27.5% year-over-year to a record high of IDR 270.2 trillion in the third quarter, after a 27.4% gain in the previous quarter. However, the USD/IDR pair rose in forex trading this morning.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities L.L.C – S.P.C (“ADSS”), a limited liability company – sole proprietorship company incorporated under United Arab Emirates law. Registered under Commercial License No.1190047. ADS Securities L.L.C S.P.C is regulated and authorised in the UAE by the Capital Market Authority (CMA) under Category 1 License No.305027 (Trading Broker, Trading and Clearing Broker, Trading Broker in the International Markets, Trading Broker of OTC Derivatives and Currencies in the Spot Market, Financial Products Dealer) and Category 5 License No.20200000217 (Introduction). Registered Office: 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
