Episode 1442: Monday - October 26, 2026
Markets Bounce, Yields Fall, and AI Deal Mania Ahead of a Fed Week
Markets Bounce, Yields Fall, and AI Deal Mania Ahead of a Fed Week
Today's Post - https://bahnsen.co/4yKFqXT
From Newport Beach, the episode recaps a modest market rebound (Dow +146, S&P +0.7%, Nasdaq +0.82%) with tech leading while communication services lagged, and highlights the 10-year yield at 4.99% after falling ~35 bps in two weeks, which the host attributes more to supply/demand and positioning than inflation. He notes elevated volatility, worsening market breadth and concentration risk, and “under the hood” weakness despite the S&P being near highs. Major items include Brazil’s election (Lula victory and a sharp equity drop), a $63B AI-compute financing structure tied to Broadcom/Anthropic, and Meta announcing a $95B stock sale plan. He flags unverified reports about Fetterman, possible Iran strike escalation, and progress on a Canada trade deal. The week ahead includes Q3 GDP (~3.3%), a Fed meeting (markets price 90% no hike), hyperscaler earnings, high mortgage rates, and elevated oil.
00:00 Welcome From Newport
00:48 Market Close Recap
01:58 Bond Yields And Fed
03:38 Market Breadth Warning
05:39 Under The Hood Losses
06:45 Global And Deal News
08:09 Politics And Geopolitics
09:21 GDP Housing And Energy
11:02 Ask TBG And Week Ahead
12:00 Closing Thoughts
Links mentioned in this episode: DividendCafe.com
David is the Founder, Managing Partner, and the Chief Investment Officer of The Bahnsen Group.
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