Nasdaq Drops 2.6% as Gold Falls and Fed Hike Looms | Global Economy, Oct 23
Rio Times Global Economy Briefing
Key Facts
- The S&P 500 fell 1.21% to 7,663 on Thursday, and the Nasdaq dropped 2.60%.
- Gold fell 2.47% to US$4,024 an ounce as the US 10-year Treasury yield dropped to 4.957%.
- The Federal Reserve meets on 27–28 October, with a hold at 3.75% to 4.00% expected.
- Brazil’s IPCA-15 inflation report is due Friday, with economists forecasting 0.43% for the month.
- Prediction markets Polymarket traders put no change at the Federal Reserve’s October meeting at 93.5% and a 0.25-point rate rise at 5.5%, as of 11:34 p.m. ET on 22 October.
The Big Three
- Nasdaq slides as tech leads the sell-off The Nasdaq Composite fell 2.60 percent to 26,009 while the S&P 500 lost 1.21 percent to 7,663, with technology shares leading the decline.
- Gold falls as Treasury yields drop Gold dropped 2.47 percent to US$4,024 an ounce and the 10-year Treasury yield fell 17 basis points to 4.957 percent, so both moved lower together.
- VIX jumps as calm breaks The VIX, Wall Street’s fear gauge, rose 14.09 percent to 19.03 as demand for protection against further losses increased.
United States
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| Initial Jobless Claims (Oct/17) | 194k | 200k | Labour market stays tight |
| Continuing Jobless Claims (Oct/10) | 1,728k | 1,703k | Slight rise, still firm |
| Jobless Claims 4-Week Average (Oct/17) | 197.75k | 198.75k | Below 200k forecast |
| S&P Global Manufacturing PMI (est) | 55.5 | 55.9 | Expected to stay expansionary |
| S&P Global Services PMI (est) | 58 | 58.8 | Growth seen cooling slightly |
Europe & United Kingdom
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| Germany Composite PMI (est) | 53.3 | 53.8 | Mild slowdown expected |
| France Business Climate (Oct) | 97 | 96 | Confidence improves |
| UK CBI Industrial Orders (Oct) | -32 | -9 | Sharp deterioration |
| Euro Area Consumer Confidence (Oct, est) | -17 | -16.5 | Forecast only; reading not in our calendar |
| UK Consumer Confidence (Oct, est) | -15 | -13 | Forecast only; reading not in our calendar |
| UK CBI Business Optimism (Q4) | -27 | -36 | Less pessimistic than feared |
Asia-Pacific & Emerging Markets
| Indicator | Actual | Prior | Verdict |
|---|---|---|---|
| Japan Inflation (Sep) | 2.7% | 1.9% | Above consensus |
| Japan Inflation Ex-Food and Energy (Sep, est) | 2% | 1.9% | Forecast only; reading not in our calendar |
| Japan Services PMI (est) | 51.3 | 51.3 | Stable |
| Mexico Core Inflation (Oct, mid-month) | 0.25% | 0.17% | Above 0.18% forecast |
| Mexico Inflation Rate (Oct, mid-month) | 0.41% | 0.33% | Above 0.37% forecast |
| Mexico Annual Inflation Rate (Oct, mid-month) | 3.62% | 3.42% | Above 3.60% forecast |
| Mexico Unemployment Rate (Sep) | 2.8% | 3.0% | Below 3.0% forecast |
| Brazil IPCA mid-month CPI (est) | 0.43% | 0.70% | Cooling expected |
| Instrument | Level | Session |
|---|---|---|
| S&P 500 (US) | 7,663 | -1.21% |
| Ibovespa (Brazil) | 204,120 | -1.15% |
| USD/BRL | 5.0443 | +0.40% |
Source: market close, 22 October 2026. Economic calendar: RT economic calendar (RT).
Today’s Economic Calendar — Friday, October 23, 2026
| Time (Lisbon) | Country | Event | Consensus | Prior |
|---|---|---|---|---|
| 01:30 | JP | S&P Global Services PMI | 51.3 | 51.3 |
| 01:30 | JP | S&P Global Manufacturing PMI | 54.5 | 54.1 |
| 01:30 | JP | S&P Global Composite PMI | 51.9 | 52.3 |
| 04:35 | JP | 3-Month Bill Auction | — | 1.28 |
| 07:00 | GB | Retail Sales | 1 | 2.4 |
| 07:00 | GB | Retail Sales Ex Fuel | -0.1 | 0.6 |
| 08:30 | DE | S&P Global Composite PMI | 53.3 | 53.8 |
| 08:30 | DE | S&P Global Manufacturing PMI | 53.5 | 53.9 |
| 08:30 | DE | S&P Global Services PMI | 52.5 | 52.9 |
| 13:00 | BR | IPCA mid-month CPI (m/m) | 0.43 | 0.7 |
| 13:00 | MX | Economic Activity (y/y) | 3.1 | 3.4 |
| 13:00 | CL | Producer Price Index (y/y) | 26 | 23.6 |
| 13:00 | BR | IPCA mid-month CPI (y/y) | 4.73 | 4.47 |
| 13:00 | MX | Economic Activity (m/m) | 0.3 | 0.8 |
| 14:45 | US | S&P Global Services PMI | 58 | 58.8 |
| 14:45 | US | S&P Global Manufacturing PMI | 55.5 | 55.9 |
| 14:45 | US | S&P Global Composite PMI | 57.6 | 58.4 |
| 18:00 | US | Baker Hughes Oil Rig Count | — | 459 |
| 20:30 | US | CFTC Nasdaq 100 speculative net positions | — | 48.5 |
| 20:30 | US | CFTC Copper Speculative net positions | — | 68.5 |
Live Market IntelligenceGlobal Markets — Live Board
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Global Markets — Live Board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| SPX | 7,751 | +0.29% | — | — | — | — | — |
| NDX | 29,799 | +0.93% | — | — | — | — | — |
| DJI | 53,810 | +0.03% | — | — | — | — | — |
| RUT | 3,041 | +0.46% | — | — | — | — | — |
| US10Y | 4.6760 | -0.17% | — | — | — | — | — |
| VIX | 14.60 | -4.45% | — | — | — | — | — |
| DAX | 26,331 | -0.23% | — | — | — | — | — |
| FTSE | 10,833 | -0.10% | — | — | — | — | — |
| CAC | 8,675 | -0.46% | — | — | — | — | — |
| STOXX | 659.48 | -0.16% | — | — | — | — | — |
| NIKKEI | 67,524 | +0.83% | — | — | — | — | — |
| HSI | 25,440 | -0.83% | — | — | — | — | — |
| KOSPI | 6,579 | +3.68% | — | — | — | — | — |
| CSI300 | 4,691 | +0.58% | — | — | — | — | — |
| NIFTY | 24,436 | -0.15% | — | — | — | — | — |
| TSX | 36,619 | +0.39% | — | — | — | — | — |
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
01 Tech giants stumble as rates bite
The Nasdaq’s 2.60 percent slide to 26,009 left the index 5.8 percent below its October 6 record close. The S&P 500 fell 1.21 percent to 7,663 while the Dow eked out a 0.02 percent gain to 52,868, a rotation that offered little comfort to growth-focused investors.
Gold’s 2.47 percent drop to US$4,024 an ounce came alongside a fall in the 10-year Treasury yield to 4.957 percent. The VIX’s 14.09 percent jump to 19.03 shows demand for protection returning.
02 The Fed’s December decision looms
Markets expect the Federal Reserve to hold its target range at 3.75 percent to 4.00 percent at next week’s meeting on October 27-28. Most large brokerages, including Goldman Sachs and J.P.
Morgan, forecast a quarter-point rise in December.
Sticky inflation keeps the pressure on. September CPI at 3.7 percent year on year and the 10-year yield near 4.957 percent mean the Fed cannot declare victory, leaving global risk assets vulnerable to any hawkish surprise.
03 France’s fiscal risk hits the euro
French 10-year borrowing costs closed above 5 percent on 21 and 22 October (5.08 percent on Thursday), the highest closing level since July 2002, turning a political story into a market event. Moody’s review of France’s Aa3 rating, scheduled for today, adds another layer of uncertainty for European bond investors already nervous about budget deficits.
For Brazil, the dollar index near 101.67 and a softer real backdrop create a delicate setup. A weaker dollar can help exporters, but if Treasury yields climb again or the Fed signals more tightening, capital that flowed into emerging markets could reverse quickly, complicating Brazil’s interest-rate path and today’s mid-month inflation reading.
04 What Prediction Markets Say
Traders on Polymarket, a prediction market where people bet real money, put the chance that the Federal Reserve leaves rates unchanged at its 27–28 October meeting at 93.5 percent at 11:34 p.m. ET on Thursday, 22 October. They gave 5.5 percent to a 0.25-point rate rise, and about US$57.4 million had been traded on that market.
These prices are bets by traders, not forecasts by the Federal Reserve or polls.
Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
What to watch today and this week
- Friday: US PMIs, Baker Hughes rig count, CFTC positioning data; Brazil IPCA mid-month CPI expected at 0.43 percent m/m.
- Next week: Federal Reserve meeting on October 27-28; all eyes on December hike signals.
- Ongoing: French sovereign downgrade risk, US inflation trajectory, Brazil real and Selic repricing.
Frequently Asked Questions
What does the VIX jump mean?
The VIX rising 14.09 percent to 19.03 signals renewed demand for downside protection.
Why did gold fall while Treasury yields dropped?
Gold fell 2.47 percent while Treasury bonds rallied, pushing the 10-year yield down 17 basis points to 4.957 percent. Both moves came on a day when the Nasdaq fell 2.60 percent.
Why is the Fed likely to hike in December?
Most large brokerages forecast a quarter-point rise in December after hotter-than-expected core inflation readings, while futures markets expect a hold in October.
How does France’s debt affect Brazil?
Higher French yields and sovereign stress can spill into global fixed income, raising the risk premium for emerging-market borrowers including Brazil.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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