S&P 500 and Nasdaq Rebound After Worst Week Since June

The S&P 500 and Nasdaq 100 rebounded on October 19, 2026, after recording their worst weekly performance since June. The Nasdaq 100 rose 1.44% and the S&P 500 increased 0.61%, recovering from a period of heavy selling driven by concerns over AI infrastructure and semiconductor stocks. While the Dow Jones remained relatively stable, the broader market saw a sector rotation as investors moved capital from technology into healthcare and consumer staples.

Market volatility remains elevated, with the VIX increasing 19.5% over the week. Evercore ISI characterized the recent selloff as the beginning of "price discovery," while JPMorgan suggested that stabilizing Treasury yields would alleviate pressure on market valuations.

Investors are now awaiting earnings reports from Meta Platforms, Alphabet, Tesla, and Netflix. These results are expected to determine whether massive AI spending is generating sufficient profit to justify current valuations.