Four big markets, four very different stories this week. The United States hit records, Brazil surged on politics, Canada stumbled on a jobs shock, and China limped toward its worst quarter in years. Here is the global snapshot and the threads that connect them.
United States: Records, With a Nervous Undertone
US stocks closed a record setting week, with the S&P 500 up 1.15%, the Dow posting its best week since August, and the Nasdaq notching a fourth straight gain. But beneath the surface, a credit scare over AI debt is rattling names like Oracle even as Nvidia keeps hitting records. The full breakdown is in our weekly US market recap.
Brazil: A Record Rally on Politics
Brazil was the week's standout. The Ibovespa closed at a record 209,066 points and the real strengthened below 5 per dollar, driven by polls favoring a market friendly outcome in the October 25 runoff. For the full story and how to invest through the iShares MSCI Brazil ETF (EWZ), see our Brazil markets piece.
Canada: The Jobs Shock
Canada lost a stunning 68,300 jobs in September and unemployment rose to 6.5%, yet the TSX rose as investors bet the Bank of Canada will hold rates on October 28. We cover the paradox, and exposure via the iShares MSCI Canada ETF (EWC), in our Canada economy update.
China: Limping Toward a Grim Quarter
China was the laggard. The Shanghai Composite hovered near 3,767 and the CSI 300 around 4,274, with the market on course for its worst quarter since 2022 as high flying tech shares pulled back and domestic demand stayed weak. Beijing rolled out credit and mortgage support this week, but analysts called it too modest to shift sentiment, and trading turnover thinned to its lowest since mid 2025. US investors tracking China watch names like Alibaba (BABA) and the iShares China Large-Cap ETF (FXI).
What Connects Them
Two global threads run through all four. The first is interest rates: the US Federal Reserve and the Bank of Canada both decide on October 28. The second is the AI trade, where a credit scare is starting to separate winners from the overextended, as we explain in our pieces on the AI debt boom and Oracle's record CDS. Even crypto is feeling it: the crypto fear gauge has cooled to neutral.
Track global markets on Stock Market ROIFrequently Asked Questions
Which stock market did best this week?
Brazil's Ibovespa was the standout, hitting a record on election optimism, while US indexes also set records. China was the laggard, heading for its worst quarter since 2022.
Why is China's stock market falling?
Weak domestic demand, a pullback in high flying tech shares, and thin liquidity, with Beijing's latest credit and mortgage support seen as too modest to shift sentiment.
When do the Fed and Bank of Canada decide on rates?
Both central banks announce on October 28, 2026, making it a pivotal day for North American markets.
The Big Picture
A week of records in the West and retreat in the East, tied together by two questions: how far central banks will go on October 28, and whether the AI trade can keep defying a growing credit scare. Those are the threads to watch into year end.
This article is for informational purposes only and is not financial advice. Always do your own research before investing.
