Oil Tops $116, Dow Drops 653 Points

In today’s business report for October 23, 2026, a fresh surge in oil prices pulled Wall Street lower on Friday, with the Dow Jones Industrial Average shedding more than 650 points. American Express said it will cut about 5% of its workforce to prepare for artificial intelligence, a report about SpaceX’s wireless ambitions knocked telecom stocks, and France braced for a credit rating verdict as its borrowing costs hovered near their highest levels since 2002.

Stock Market Today: Oil Pressure Drags the Dow

The Dow fell 652.82 points, or 1.23%, to close at 52,215.16. The S&P 500 lost 0.52% to 7,623.68, and the Nasdaq Composite slipped 0.21% to 25,955.34, Reuters reported. Technology shares steadied a day after the Nasdaq’s steepest drop since June, and the S&P 500 tech sector actually gained 0.35%. The selling moved elsewhere instead, hitting consumer staples, consumer discretionary and financial stocks. The Associated Press counted nearly three of every four stocks in the S&P 500 finishing lower.

For the week, the S&P 500 dropped 0.5% and the Nasdaq 0.7%, a second straight weekly loss for both. The Dow managed a 0.4% weekly gain, its third in a row. Investors now turn to a crowded week ahead: about a third of S&P 500 companies report results, including Alphabet, Microsoft and Amazon, and the Federal Reserve holds a policy meeting. If you missed Thursday’s rout, our Oct. 22 business report covers the AI selloff that set up today’s trading.

Oil Prices Climb to a Six-Month High

Energy was the story of the day. Brent crude, the global benchmark, rose 3.1% to settle at $116.72 a barrel, its highest close since April 29, while U.S. West Texas Intermediate gained 3.8% to $103.27, CNBC reported. Brent is up 6.2% this week, its third weekly gain in a row. Traders are bracing for renewed U.S. strikes on Iran, and Iran-allied Houthi militants have kept attacking Saudi Arabia. Saudi state media said a drone strike on the Shaybah oil field on Wednesday killed two people. President Donald Trump said Wednesday that the U.S. was not negotiating with Iran and that something would happen “fairly soon.” Our report on U.S. and Israeli plans for renewed Iran strikes has more on the conflict behind the price spike.

Oil producers rallied on the move. Oilfield services firm SLB jumped more than 7% and Halliburton about 6%, according to CNBC’s midday movers. Discount retailers went the other way after Wells Fargo warned that higher diesel costs could squeeze their profits into 2027, sending Dollar Tree, Dollar General and Ollie’s Bargain Outlet down more than 5%.

Bonds, the Dollar and Consumer Mood

Treasurys gave back part of Thursday’s big rally. The 10-year yield rose 5 basis points to 4.999%, staying just under the 5% line, CNBC reported. The two-year yield climbed to 4.686% and the 30-year to 5.312%. Futures markets put the odds of a quarter-point Fed rate hike in December at roughly 71%, according to the CME FedWatch tool, though no change is expected at next week’s meeting. The dollar index rose 0.13% to 101.70, and the euro slipped 0.12% to $1.12.

Americans remain gloomy. The University of Michigan’s final October reading of consumer sentiment came in at 48.0, barely changed from September but 10% below a year ago. Expectations for inflation over the next year rose to 4.7%, and long-run expectations reached 3.5%, both the highest since May. Survey director Joanne Hsu said buying conditions for big-ticket items plunged 18% on higher interest rates, and 85% of consumers said it is a bad time to buy a house.

American Express Cuts Jobs, SpaceX Rattles Telecom

American Express is eliminating 5% of its global workforce and taking a $336 million restructuring charge, chief executive Stephen Squeri told analysts on Friday. The company had almost 77,000 employees at the end of 2025, CNBC reported. Chief financial officer Christophe Le Caillec told CNBC the goal is to make the company “leaner, more agile, and also to prepare for AI.” The cuts came alongside strong results: adjusted earnings of $4.68 a share beat estimates, and Amex raised its full-year forecast to between $18.30 and $18.60 a share. Revenue grew 9% to $20.06 billion, slightly short of forecasts, and the stock fell roughly 4%.

Telecom stocks tumbled after Bloomberg News reported that SpaceX is in private talks to lease 80,000 cell towers as it tries to build a fourth nationwide wireless carrier, combining Starlink’s direct-to-phone satellites with ground equipment, CNBC noted. AT&T and T-Mobile each fell more than 5%, while tower owner Crown Castle, one of the companies reportedly in talks, rose about 10%.

France’s Debt Test and the Pentagon’s Investment Push

Overseas, Moody’s was set to deliver its review of France’s Aa3 credit rating after U.S. markets closed, with most analysts expecting a downgrade, Reuters reported. France’s 10-year yield touched 5.14% on Thursday, its highest since July 2002, and the premium over German debt reached a 15-year high as riots and a fractured parliament complicate budget cuts. For background, see our coverage of France’s protest ban after the riots.

In Washington, The American Prospect reports that the Pentagon keeps taking ownership stakes in private companies while Congress debates limits. A Senate Armed Services draft of the defense policy bill would strip the Pentagon’s Economic Defense Unit of the power to lead equity deals. Even so, the department has since made four new direct investments totaling $775 million, all in critical minerals companies. The administration has also asked for more than $20 billion for the Office of Strategic Capital this year, up from $300 million last year.

The Economist, meanwhile, argues that computing power for AI is becoming a commodity like oil and needs a real market. It cites Boston Consulting Group estimates that about $360 billion was spent on AI compute last year, a figure BCG expects to reach $2.3 trillion in transactions by 2030, as exchanges including CME Group seek approval for compute futures.

Boston Business: Mass General Brigham Shrinks Home Hospital

Closer to home, Mass General Brigham plans to sharply cut its Home Hospital program, which delivers hospital-level care in patients’ homes, according to an internal memo obtained by The Boston Globe. The memo says the program has lost an average of $30 million a year over the past three years. It will eventually treat no more than 30 patients at a time, down from a capacity of 70 in August 2024, and the cuts will mean job losses. The state’s largest hospital system says it ran more than $300 million behind budget near the end of its 2026 fiscal year.

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Business Report, Oct. 23, 2026: Oil Spike Sinks Dow 653 Points