Global stocks edge higher as oil eases, but rate jitters cap the rebound

Global equity markets started Monday, October 26, on a firmer footing after last Friday’s sharp sell‑off on Wall Street. On October 23, the Dow Jones Industrial Average dropped more than 600 points as surging oil prices and higher U.S. Treasury yields rattled investors. With crude prices slipping back at the start of the week, European benchmarks such as Germany’s DAX and France’s CAC 40 opened higher as bargain hunters stepped in.

The rebound, however, rests on fragile ground. Investors face a dense calendar: the upcoming Federal Open Market Committee (FOMC) meeting and a wave of U.S. earnings, including major technology names. The key question is whether corporate profits can withstand a backdrop of elevated oil prices and policy rates hovering around 5%, which together stoke fears of renewed inflation and further monetary tightening.

Sector performance is uneven. Some beaten‑down tech stocks are seeing dip‑buying, while rate‑sensitive groups like real estate and richly valued growth shares remain under pressure. Many strategists still frame the move as a short‑term technical bounce rather than the start of a sustained rally. With volatility likely to stay elevated, this week’s earnings and macro data could quickly determine whether risk appetite returns—or the downturn resumes.