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Investment Daily: US tech stocks recovered after the recent selloff

20 October 2026

Key takeaways

  • US stocks ended mixed; Treasuries fell.
  • European stocks and government bonds fell.
  • Asian stocks traded mixed.

Markets

US stocks were mixed on Monday, as chipmaker/technology stocks rebounded after the recent selloff, ahead of some major earnings results. The S&P 500 rose 0.4%.

US Treasuries fell as demand for safe assets faded. 10-year yields rose 5bp to 5.14%.

European stocks fell on Monday as protests in France weighed on market sentiment. The Euro Stoxx 50 lost 1.0%. The German DAX fell 1.2%, while the French CAC was down 1.1%. In the UK, the FTSE 100 ended 1.1% lower.

European government bonds fell. 10-year German bund yields rose 3bp to 3.45%, and 10-year French bond yields jumped 14bp to 4.94%. In the UK, 10-year gilt yields rose 6bp to 5.43%.

Asian stock markets traded mixed on Monday, amid continued volatility in semiconductor/technology stocks and lower oil prices ahead of a busy week of US corporate earnings. Japan’s Nikkei 226 lost 0.6% while Korea’s Kospi erased earlier losses to end 1.8% higher. Elsewhere, China’s Shanghai Composite rose 0.4% following upbeat economic data, while India’s Sensex dropped 1.2%. The Hong Kong market was closed for a public holiday.

Crude oil prices fluctuated on Monday. Brent for December settlement edged lower to USD109.6 a barrel.

Key Data Releases and Events

Releases yesterday

In China, real GDP growth picked up to 4.5% yoy in Q3 from 4.3% yoy in Q2, with sequential growth accelerating to 1.2% qoq sa. from 0.9% qoq sa. Strong exports, robust high-tech manufacturing, and incremental policy support lifted Q3 growth, but private consumption was tepid, investment contracted, and housing remained a key drag. The two-speed economy has persisted. In September, industrial production expanded by 5.5% yoy, after a 5.2% yoy gain in August. Retail sales growth rose to 1.1% yoy in September from 0.4% yoy in August, partly reflecting a lower base effect due to the shift in holiday timing.

Releases due today (20 October 2026)

No major data release. 

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