The market walked in bruised and bounced. After its worst week since June, stocks steadied at the start of a huge stretch: a megaweek of earnings led by Netflix, Meta and Tesla, with the Federal Reserve waiting at the end of the month. Here is where things stand and what to watch.
Shaking Off the Worst Week Since June
Last week was rough. The S&P 500 fell nearly 2%, its biggest weekly drop since late June, and the Nasdaq tumbled 4.5%, snapping a four week winning streak as the AI and tech trade finally cooled. This week opened with a rebound: on Monday the Nasdaq jumped 1.11% and the S&P rose 0.41%, led by consumer discretionary and technology. By Tuesday the Dow tacked on more than 500 points, with defensive sectors like health care, real estate and utilities leading, a sign of a market still rotating rather than charging.
The Megaweek of Earnings
This is one of the busiest earnings weeks of the year, with roughly 70 companies reporting. The headliners are the megacaps. Netflix (NFLX) reports first, after Tuesday's close, with analysts looking for about $0.82 per share. Then Wednesday brings a cluster: Meta (META) and Tesla (TSLA) after the close, plus IBM (IBM), Texas Instruments and Lam Research. We break down the two biggest in our Meta and Tesla earnings preview and the streaming giant in our Netflix preview.
The Fed Waits at Month End
Looming over all of it is the Federal Reserve meeting on October 27 and 28. The central bank is already in its quiet period, so no officials will speak this week, leaving earnings and economic data to drive the tape. After a hot inflation report revived the case for caution, the decision is genuinely uncertain, as we covered in our piece on the inflation shock and the Fed.
What It Means
A beaten down tech sector heading into its biggest earnings of the quarter is a high stakes setup. Strong megacap results could confirm the rebound and steady the AI trade; disappointments could reopen the selloff, especially with the Fed in view. For the deeper tension between record stocks and record debt, see our AI trade scenarios.
Track the market live on Stock Market ROIFrequently Asked Questions
Why did the stock market fall last week?
The S&P 500 had its worst week since June and the Nasdaq dropped 4.5% as the high flying AI and technology trade cooled, pressured by a hot inflation report and stretched valuations.
What big companies report earnings this week?
Netflix reports Tuesday, October 20, while Meta, Tesla, IBM and others report Wednesday, October 21, in a week with roughly 70 companies reporting.
When is the next Fed meeting?
The Federal Reserve meets October 27 and 28, 2026. It is in its quiet period this week, so no officials will comment publicly before the decision.
The Takeaway
The market is caught between a relief rebound and a nervous backdrop of cooling tech, hot inflation, and a pivotal Fed meeting. This week's megacap earnings are the swing factor, and they land right before the Fed. Watch the guidance from Meta and Tesla as much as the headline numbers, because they will set the tone into October 28.
This article is for informational purposes only and is not financial advice. Always do your own research before investing.
