Market brief — 27 October 2026
Markets moved cautiously as investors balanced easing long-term yields and softer oil against the Federal Reserve's approaching policy decision.
Markets moved cautiously as investors balanced easing long-term yields and softer oil against the Federal Reserve's approaching policy decision. The US 10-year Treasury yield slipped to 4.98% from 5.00% on Friday, but the more policy-sensitive 2-year yield rose to 4.71% from 4.69%. That split suggested less concern about longer-run inflation while near-term rate expectations remained firm. Brent settled 0.9% lower at $110.74, cooling part of the energy-driven inflation impulse, although prices remained high enough to keep central-bank risk in focus.
US equities absorbed the crosscurrents better than other risk assets. The Dow Jones Industrial Average gained 146.42 points, or 0.3%, to 52,361.58, while the S&P 500 rose 0.7% and the Nasdaq advanced 0.8%. Nvidia's 2.4% gain provided the strongest lift, but violent swings in AI-related shares showed that expensive financing and heavy data-center spending remain valuation constraints. With Alphabet and Microsoft due to report on Wednesday and Amazon on Thursday, earnings expectations helped equities look through the cautious rates backdrop, but did not remove the sensitivity to Fed guidance.
Gold rebounded as lower oil eased inflation fears and bargain buyers returned after Friday's fall to a three-month low. Spot bullion rose about 0.6% to $4,018.81 per ounce, while December futures traded near $4,033.60. The fall in the 10-year yield reduced the opportunity cost of holding non-yielding metal, but the higher 2-year yield and anticipation of the Fed decision capped conviction. Gold therefore reflected both sides of the macro transmission: relief from oil and long yields supported prices, while restrictive policy expectations limited the recovery.
Crypto remained the weakest expression of risk appetite. Binance market data showed BTCUSDT near $80,000 and ETHUSDT around $2,300, with both under pressure as traders reduced exposure before the Fed decision. Bitcoin had already fallen to a one-month low during the weekend, and the lack of a strong rebound despite firmer US equities pointed to crypto-specific deleveraging and caution around ETF demand. Higher short-term yields and a still-restrictive dollar liquidity backdrop continued to weigh more heavily on digital assets than the modest decline in oil helped them.
Vietnamese equities also turned lower after four consecutive advances. VN-Index fell 10.60 points, or 0.60%, to 1,763.55, while VN30 lost 0.92% to 1,889.53 as 22 of its 30 constituents declined. Banks and technology led the drag, while utilities and energy offered limited support. HOSE matched value fell to about VND13.53 trillion, below the recent average, and foreign investors sold a net VND892 billion, led by selling in FPT, HDB and VPL. The combination of weak breadth, softer liquidity and foreign outflows showed that the external rates and dollar backdrop was transmitting into local risk appetite, even as lower oil reduced some pressure on inflation-sensitive sectors.