October 2026 Market Snapshot

October was a good reminder of the benefits of a diversified portfolio. Gains in bonds offset declines in equities, while losses in growth stocks were offset by positive returns in value stocks. Furthermore, the equal-weighted S&P 500 grew by 5.0% while the headline index lost 0.9% for the month. This strength across a wide array of sectors demonstrated that any technology weakness need not hinder the success of the broader market. Fixed income assets will look to build on a strong month moving forward even as yields remain elevated. The Federal Reserve opted to keep their target interest rate unchanged in their October meeting. Fed Chair Warsh indicated a measured approach to rate hikes as the committee monitors both resilient economic growth and stubborn oil prices continuing to hover around $100/barrel. Meanwhile, markets brace for the U.S. midterm elections. Regardless of election outcome, the S&P 500 typically experiences volatility in the weeks following a midterm election. However, this volatility is typically short-lived and followed by strong returns with the S&P 500 never having been negative 12 months following a midterm election. While this is no guarantee of strong performance, history is certainly encouraging!