US stocks closed higher on Monday, October 26, 2026, bouncing back from two straight weekly losses as investors braced for a crowded week of corporate earnings and a Federal Reserve policy decision. The Dow Jones Industrial Average rose about 146 points, or 0.3%, to roughly 52,361. The S&P 500 gained 0.7% to about 7,677, and the Nasdaq Composite added 0.8% to around 26,169, according to market wraps from CNBC and TheStreet.
The Fed’s two-day meeting began on Tuesday, October 27, with the decision due Wednesday. Markets widely expect the central bank, now led by Chair Warsh, to hold interest rates steady, and the CME FedWatch tool showed about a 90% probability of a pause. Traders are more divided about December, with futures pricing a high chance of a rate increase as oil-driven inflation threatens to keep price pressures elevated. Strategists noted that the approaching midterm elections add another reason for the Fed to avoid surprises this week.
It is also the busiest earnings week of the quarter, with roughly one-third of S&P 500 companies reporting, including Microsoft, Alphabet and Amazon. The Bank of Japan and the European Central Bank also meet this week, and Thursday brings the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge. Investors have been unsettled by worries about the scale of AI infrastructure spending and by crude oil above $100 a barrel. On Friday the Dow had dropped more than 650 points and the VIX volatility index rose above 20.
Monday’s rally was helped by easing oil prices on hopes for less US-Iran tension and by a lift in technology shares after reports that a major AI company had filed for an initial public offering. Analysts caution that the gains are fragile if the Middle East conflict worsens.
What to watch: the Fed’s statement and Chair Warsh’s press conference, earnings commentary on AI capital spending, the PCE inflation reading on Thursday, and oil prices. This article is general news, not investment advice.
Sources: CNBC, TheStreet, Schwab, Kiplinger, FXStreet, Yahoo Finance (October 23–26, 2026). Compiled October 27, 2026.
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