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Newstock Financial News Brief | October 26, 2026

The economic overview, liquidity, the Federal Reserve and today's headlines. Explore global fund allocations, the upcoming Fed meeting, Verizon's AWS agreement and market developments in Korea and France.

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Episode transcript

Morning update

Today is October twenty-sixth, twenty twenty-six. Let’s take a look at today’s headlines.

Growth, inflation and the next economic test

The US economy enters this week with resilient growth and persistent inflation pressure. The Bureau of Economic Analysis puts second-quarter annualized growth at two point two percent. In its September assessment, the Fed described economic activity as expanding solidly, with job gains keeping pace with the workforce and inflation remaining elevated. Thursday's GDP and personal income and outlays reports will provide the next major check on growth, consumer spending, and inflation. Together, they will shape expectations for borrowing costs and corporate demand.

Cash buffers and funding prices

Now to liquidity. In the week ended October twenty-first, the Fed reported that average bank reserves fell by about fifty-nine and a half billion dollars, while the Treasury's average cash account increased by about sixty-eight point six billion. By October twenty-third, overnight reverse repo usage stood at two hundred million dollars. The secured overnight financing rate was three point nine two percent, two basis points above the reserve interest rate. Taken together, these readings point to a smaller banking cash buffer and slightly firmer overnight funding costs.

Fund allocations across markets

Fund allocations show where investors are adding exposure. Reuters, citing LSEG, reports that global equity funds attracted twenty-eight point one six billion dollars in the week through October twenty-first. Asian equity funds received eleven point five three billion, European funds nine point one four billion, and US funds five point oh seven billion. Money-market funds also attracted cash. The pattern combines equity investment with a continuing preference for readily available liquidity.

Market expectations for the Fed

The Fed's decision is due Wednesday. Reuters reported this morning that, as of last Friday, interest-rate futures priced roughly a ninety percent chance of keeping the target range at three point seven five to four percent. Reuters also reports that traders continue to see a December increase as a possibility. That puts the focus on the message accompanying this week's decision: how officials assess inflation, the economy's resilience, and the effect of higher long-term borrowing costs. Investors will listen for clues about the next meeting and the future path of rates.

Verizon raises its outlook and announces an AWS agreement

Turning to today's headlines: Verizon reported third-quarter results, raised its full-year outlook, and announced an AI infrastructure agreement with Amazon Web Services valued at more than two billion dollars. The agreement connects Verizon's network infrastructure with AWS's AI computing needs. For Verizon, watch customer growth, cash generation, and execution of the partnership. For Amazon, the question is how expanded network access supports AWS demand and its investment plans. The story brings telecom operators and cloud platforms into the same AI infrastructure discussion.

Regeneron extends a government procurement agreement

In healthcare, Regeneron extended its BARDA agreement to supply the Ebola treatment Inmazeb. The company expects about two hundred and seventy million dollars in payments, with additional deliveries through twenty thirty-one. The extension adds a government procurement commitment to follow alongside Regeneron's wider business. Delivery schedules and the company's financial updates will show how that commitment develops over time.

Korea sells off; French bonds get a rating reprieve

Across international markets, Korea's KOSPI fell one point four six percent today, with local reports pointing to foreign selling in cash equities ahead of major earnings and the Fed meeting. French bonds gained relative support in Monday's European trading after Moody's maintained its A a three rating with a negative outlook last Friday. In France, the next focus is progress on the twenty twenty-seven budget and the government's ability to deliver deficit reduction.

What to watch next

This week's focus is the Fed's policy message, Thursday's economic data, and the business results behind the AI investment cycle. The analysis reflects this program's views and is for your reference.

Closing

Thanks for watching. I'm Kylie Young. Visit newstock.ai or download our app on the App Store and Google Play. Follow us on X and YouTube and share your ideas to improve Newstock. See you next time.

Sources

AI presenter: Kylie Young. Recorded news and analysis for research and education.