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News
Monday, October 12, 2026
What’s happening: US stocks closed higher on Friday, while recording gains for the week.
What happened: The Dow Jones index jumped more than 400 points on Friday amid projections of a strong start to the latest earnings season.
US big banks are scheduled to kickstart the earnings season this week, while investors also await inflation data.
Why it matters: The third-quarter earnings season is due to commence this week, with the biggest US banks, including Goldman Sachs, Wells Fargo, Citigroup, Bank of America, JPMorgan Chase and Morgan Stanley, are scheduled to report their quarterly results starting tomorrow.
Analysts expect S&P 500 earnings to jump 30.6% year-over-year in the latest quarter, with energy and tech companies likely to record the strongest annual earnings growth of 123% and 66.5%, respectively.
Among the 11 major sectors, real estate and consumer discretionary stocks were among the top performers on Friday, while the communication services sector was the only loser.
Data released on Friday showed that the University of Michigan’s consumer sentiment index declined to 46.3 in October, recording its lowest reading since May. The latest reading also came in below market estimates of 47.6. Year-ahead inflation expectations accelerated for the second month to 4.7% in October. This marked the highest reading since May.
Tesla’s stock climbed more than 2% on Friday, after the company reported that its China-made EV sales growth accelerated to 5% year-on-year, from August’s 3.6%, with sales in Europe continuing to recover.
Apple’s shares slipped on Friday after the company asked some suppliers to scale back production of components for its latest iPhone 18 Pro and Pro Max models.
The Dow Jones index jumped 423.31 points, or 0.83%, to close at 51,654.95. The S&P 500 rose 0.59% to settle at 7,811.51, while the Nasdaq 100 rose 0.51% to 30,883.15 on Friday.
All major indices recorded gains for the week, with the Dow and S&P 500 notching gains for the second week in the past three weeks.
What to watch: Investors will keep an eye on earnings releases by US banks this week.
Data on US inflation rate will be released on Wednesday. Analysts expect the annual inflation rate to surge to 3.7% in September, from 3.4% in August. US consumer prices, which climbed 0.4% in August from 0.1% in July, are expected to rise further to 0.6% in September.
Context: The GBP/USD forex pair rose this morning, recovering from three-month lows, amid some easing in oil prices.
Details: Brent crude prices retreated after US President Donald Trump reported “productive” talks with Iran, while indicating that he wanted to avoid attacking the region before the midterm elections in November.
Investors also monitored comments from Bank of England’s members, after BoE chief economist Huw Pill reiterated the need to bring inflation under control. MPC (Monetary Policy Committee) member Megan Greene cautioned that wage growth in the UK could reach about 3.5% next year, which could sustain inflationary concerns and increase the need for interest rate hikes.
Investors widely expect the BoE to raise its benchmark interest rates in November, as this remains the only major central bank to not tighten its monetary policy in response to the inflationary concerns triggered by the US-Iran conflict.
Weakness in the US dollar lent some support to the GBP/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, edged lower to 102.17 this morning.
The GBP/USD forex pair gained around 0.1% to reach 1.3241 this morning.
What to watch: Investors will keep an eye on developments related to the US-Iran conflict.
Data on GDP, Industrial Production and Balance of Trade from the UK will be released on Thursday. The UK’s GDP growth, which accelerated to 1.6% year-over-year in July from 1.1% in the previous month, is expected to expand further by 1.7% in August. Analysts expect industrial production in the UK to decline by 0.1% in August following a 0.2% gain in July. The UK’s trade deficit, which shrank to £3.45 billion in July from £5.54 billion in the previous month, is expected to widen to £3.6 billion in August.
Other Markets: European indices closed higher on Friday, with the FTSE 100, CAC 40 and DAX 30 up by 1.06%, 0.95% and 1.13, respectively.
US President Donald Trump announced that Russia and Ukraine had reached an energy ceasefire, effective immediately. The news sent the USD/RUB forex pair higher in forex trading this morning.
Saudi Arabia’s industrial production dipped 23.5% year-over-year in August, after an 8.3% decline in the previous month, which lent support to the USD/SAR forex pair.
Canada’s employment fell by 68,300 in September, missing market estimates of a 7,000 gain. Employment falling the most in seven months sent the USD/CAD pair higher in forex trading this morning.
Japan’s machine tool orders jumped 60.4% year-over-year to a fresh record of ¥223,209 million in September, versus a 64.7% gain in the previous month. Machine tool orders recording annual growth for the 14th consecutive month exerted pressure on the USD/JPY forex pair.
Malaysia’s retail sales surged 6.5% year-over-year in August, compared to a 6.4% gain in the previous month, which sent the USD/MYR pair lower in forex trading this morning.
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