Investment Week at a Glance
Stocks finished mixed last week. The Dow Jones Industrial Average was up 0.5%, the S&P 500 was down 1.0%, and the NASDAQ was down 1.7%. Foreign stocks (MSCI EAFE) were down 1.4% for the week. Bond prices were also up for the week, with the 10-year U.S. Treasury yield ending the week at 4.97%. (Data source: Wall Street Journal)
Federal Reserve Open Market Committee (FOMC) to Meet This Week
On Tuesday and Wednesday, monetary policymakers will meet to discuss the Federal Reserve’s monetary policy. At its September meeting, the committee unanimously voted to raise the federal funds rate 25 basis points for the first time in 3 years. Many economists are expecting rates to be held steady this month, but the possibility of a rate hike still exists because of the hotter-than-expected inflation data that was released earlier this month. With layoffs relatively low, business activity strong, and inflationary pressures building, the Fed has reason to remain relatively hawkish for the remainder of 2026 (Reuters).
Consumer Sentiment Remains Near Historic Lows
The University of Michigan Consumer Sentiment Index was released on Friday, October 23rd, with a reading of 48. This marks one of the lowest readings since the index’s inception in 1952. This reading remains essentially unchanged from September’s 48.1 but is down by over 10.4% from this time last year. While spending in the economy as a whole remains resilient, consumers are certainly feeling widespread purchasing power strains, especially on durable goods like housing and automobiles as interest rates remain elevated (University of Michigan).
Chevron Stock Up 50% in 2026, As the Energy Sector Leads S&P 500 in Performance
Chevron (CVX), one of the largest energy companies in the United States, has performed remarkably well this year due to higher international oil prices and strong earnings growth. In June, the company beat revenue expectations by over 16%, reporting $67.2 billion in total revenue for its second quarter (Chevron Investor Relations). Additionally, the oil giant has beaten earnings per share expectations for 7 quarters in a row, which reflects the company’s ability to sustain earnings growth for shareholders. The company is set to release its next set of earnings this week on October 30th, and Wall Street analysts expect another strong quarter as oil prices remain elevated (CNBC).
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Quiz
The Energy Sector Has Outperformed the Technology Sector By What Percentage In 2026?
(Scroll Down for Answer)
- 13%
- 20%
- 27%
- 34%
Answer:
4. 34%. The energy sector of the S&P 500 has returned over 55% this year, while technology has only returned 21%. Oil prices have been a key driver for the energy sector’s performance as barrels remain at around $100 each. The MGO portfolios have been overweight in the energy sector this entire year, and it has helped boost portfolio performance quite significantly (S&P Global).
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