The S&P 500 closed little changed and the Nasdaq fell 0.4%, while the Dow gained 196 points on Monday. Tech led the declines, while energy, communication services and consumer staples outperformed. Investors are preparing for the earnings season while awaiting key US inflation data due later this week. Meanwhile, oil prices rose following deadly strikes on Riyadh’s airport over the weekend. Prices also drew support from renewed concerns over energy infrastructure after Ukrainian President Zelenskyy said Russia had continued targeting energy facilities, despite US President Trump’s highlighting fresh Russian diesel exports and a Russia-Ukraine ceasefire on energy targets. Micron tumbled 3.9% as investors assessed growing competition from China’s CXMT and Nvidia fell 1.3%. In contrast, Meta gained 3.4% following the release of a long-awaited AI model, while Salesforce advanced 2.1% after Bank of America upgraded the stock. Chevron also rose 1.4% amid higher oil prices.

The dollar index strengthened to 102.5 on Monday, holding near its highest level since April 2025, as investors expect inflation to rise further and escalating Middle East tensions boosted the dollar’s safe-haven appeal. Crude oil rose for a third consecutive session as President Zelenskyy accused Russia of violating the energy ceasefire with continued strikes, while Saudi Arabia reported new drone and missile attacks following a deadly strike on Riyadh’s airport. Meanwhile, both CPI and PPI data are due this week. Markets largely expect the Fed to keep interest rates unchanged at its October meeting, while pricing in another rate hike in December. The Fed last raised borrowing costs in September, marking its first rate hike since 2023. The euro, the index’s largest component, weakened further amid fiscal concerns and political unrest in France.

Mexico’s industrial production rose 3.5% year-on-year in August 2026, its strongest increase since April 2024, accelerating from 2.7% in July and significantly exceeding market expectations of a 2.6% gain. Growth was driven by stronger manufacturing activity, which accelerated to 3.2% from 1.6% in the previous month, supported by a further increase in the production of petroleum and coal products (21.4% vs. 14.7%). Construction activity also strengthened, rising 7.5% following a 7.3% increase in July, driven by a sharp acceleration in civil engineering construction (17.6% vs. 2.4%). In contrast, mining production declined by 0.8%, reversing a 1.6% increase in the previous month, as mining-related services contracted (-7.3% vs. 26.0%) and petroleum and gas extraction edged down 0.1%, compared with a 1.6% increase in July. On a monthly basis, industrial production rose 0.6%, up from a 0.5% gain in July.

The headline inflation rate in India rose to 5.54% in September 2026 from 4.83% in the previous month, the highest since October 2024 and ahead of market expectations of 5.4%. It was the 11th straight month of rising inflation in the economy, approaching the Reserve Bank of India's upper tolerance limit of 6% as adverse weather and geopolitical shocks to oil prices lifted the costs of major products in the Indian consumer basket. Food costs were 7.74% higher year-on-year, with onion prices jumping 108% while ginger (62.9%) and garlic (54.6%) also increased sharply. Meanwhile, higher oil prices and a weakening rupee drove transportation inflation to 5.01%. Price growth was also high for restaurants and accommodation (9.36%) and personal care and social protection (13.75%). Month-on-month, the Indian CPI rose by 0.69%.

China's total vehicle sales fell 8.4% year-on-year to 2.956 million units in September 2026, following a 5.1% drop in August, according to the China Association of Automobile Manufacturers (CAAM). Passenger vehicle sales declined 9.5% to 2.588 million units, while commercial vehicle sales edged up 0.2% to 369,000 units. New energy vehicle (NEV) remained a bright spot with sales rising 13.6% to 1.823 million units, following a 17.8% jump in August. NEVs accounted for 61.6% of total sales, marking the third straight month above 60%. In the first nine months, total vehicle sales fell 4.5%, while NEV sales climbed 11.1% to 12.47 million units. NEVs accounted for 53.6% of new vehicle sales for the third consecutive month. However, total vehicle sales rose 9% month-on-month in September.

The euro began the week trading below $1.12, hovering near its weakest level in 17 months, as investors weighed France’s record-high debt and political challenges to implementing budget cuts against the resilience of the US economy and the strength of the dollar. France’s budget plans for 2027 aim to reduce the fiscal deficit to 5% of GDP, but concerns are mounting over whether the government can secure parliamentary approval for substantial spending cuts amid a deeply divided parliament, particularly with next year’s presidential election approaching. Meanwhile, Brent crude prices rebounded following a deadly attack on Riyadh’s airport in Saudi Arabia, while Ukraine reported continued Russian strikes on its energy infrastructure. Markets are also looking ahead to Wednesday’s US CPI data for clues about the Federal Reserve’s interest-rate outlook, while eurozone central bankers are scheduled to deliver speeches during the IMF-World Bank annual meetings in Bangkok this week.