Thursday Wipes Out Early-Week Stock Gains as Brent Tops $117
thePropTrade Week – Sunday 25 October 2026
5 min read
- October 25, 2026
Hi Traders,
Another volatile week, with politics now fully centre stage. Thursday wiped out all of the early-week gains for stocks, gold and Bitcoin as Brent rallied through $114, then closed the week above $117. The US 10-year yield broke under the key 5% level for the first time in nearly three weeks, and the Dollar Index hit a low for the month.
Missed last week’s action? Catch up on last week’s recap, where the Nasdaq 100 had its worst week since 2005 and Brent closed at $112. Hot CPI and PPI readings also weighed on sentiment.
Politics Takes Centre Stage: Midterms, Russia-Ukraine and Israel
The US midterm elections are just 9 days away. Russia and Ukraine have agreed to trilateral negotiations with the USA but continue to exchange attacks. Israel also holds a general election next week that could unseat Prime Minister Netanyahu and change the dynamics of the US/Iran war and the wider Middle East.
President Trump’s approval rating hit a new low of 31% (Ipsos/Reuters), and 33% in the Washington Post/ABC poll, following reports that sanctions on Russia could be waived. The President said the move was part of a strategy to bring President Putin to the negotiating table.
Thursday’s Reversal: Stocks, Gold and Bitcoin Give Back Early Gains
Thursday was the pivotal day of the week, erasing the early-week gains for stocks, gold and Bitcoin as oil rallied and Brent broke to $114. The bid followed through on Friday, with Brent closing the week above $117 a barrel as tensions and threats escalated on both sides.
10-Year Yield Breaks Under 5% as the Dollar Rally Cools
The Dollar rally cooled as the US 10-year yield broke under the key 5% level for the first time in nearly three weeks. The Dollar Index also hit a low for the month.
S&P 500 Slips Under Its 50-Day Moving Average, Nasdaq Falls 0.7%
Despite strong numbers from Tesla, Meta and SpaceX, the S&P 500 is now below its 50-day moving average. It fell 0.5% on the week to close at 7,623, a second consecutive weekly loss. The Nasdaq was once again the biggest mover as concerns over AI investment continued, losing 0.7% on the week.
Gold Breaks Below $4,000, Bitcoin Drops Under $81,000
Gold hit a 62-day low, breaking below $4,000, and closed the week at $3,990. Bitcoin dropped below $81,000 on Wednesday from close to $85,000.
Week Ahead: Central Bank Week, Big Tech Earnings and Core PCE
Microsoft, Alphabet and Amazon report third-quarter earnings, along with Coca-Cola, Visa, Intel and many more. It is also central bank week, with interest rate announcements from the FOMC, BOJ, ECB, BOC and RBNZ. The core PCE Price Index and Conference Board consumer sentiment add to the end-of-month data deluge.
Happy trading, everyone.
Written by Stuart Cowell, Head of Education