Big Tech faces funding strains amid market turbulence on Oct 26, 2026

As Dow Industrials rose more than 140 points, markets faced divergent sector pressures on Monday, October 26, 2026. Big Tech stock offerings and bond sales faced funding strains, while artificial intelligence adoption showed a statistically significant correlation with rising unemployment, according to Goldman Sachs notes cited by CNBC.

Financial markets headed into the next trading session balancing upward momentum in the Dow Industrials against sharp corrections across technology shares, energy milestones, and emerging market turbulence. CNBC TV producers monitored multiple shifts as major indexes adjusted following recent highs, with semiconductor funds and consumer stocks flashing notable pullbacks.

Big Tech Financing Pressures and Semiconductor ETF Declines

During a segment on Mad Money, Jim Cramer discussed fundraising activity across Big Tech as companies rush to secure capital for artificial intelligence infrastructure. Cramer pointed to bond offerings by Amazon and stock offerings by Meta Platforms, alongside fundraising by SK Hynix, Oracle, Intel, and Alphabet, warning that the debt and equity markets are running out of money, and cautioning that rising interest rates make capital increasingly scarce, a concern also raised by Jensen Huang of Nvidia during an interview on Morning Call.

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Technology shares reflected those tighter conditions. The Nasdaq-100 traded 6.66% off its earlier monthly high, while the VanEck Semiconductor ETF (SMH) fell 20% from its June high. The Roundhill Memory ETF (DRAM) dropped 41% from its June high, and the iShares Semiconductor ETF (SOXX) sat 25% below its high. Individual equities also pulled back, with Advanced Micro Devices off nearly 20% from its October 6 high, Nvidia down 11% from that same date, and Amazon trading 13% below its August 3 high.

Consumer Segment Earnings and Goldman Sachs AI Labor Note

Consumer health remained in focus as Hormel Foods CEO John Ghingo prepared to appear on Squawk on the Street during the 11 a.m. hour ET. Hormel shares slipped 17% over three months and stood 21% off their June high. Coca-Cola, which reported in the morning, saw its stock rise nearly 13% over three months after hitting a new high the prior week. Royal Caribbean prepared for a Tuesday morning earnings report alongside CEO Jason Liberty’s scheduled appearance on Squawk on the Street; Royal Caribbean shares were down 4% over three months and 21% off their February high.

Meanwhile, Squawk on the Street anchor Carl Quintanilla highlighted page 4 of a Goldman Sachs note indicating that The share of US firms that have adopted AI in regular business functions now shows a statistically significant negative correlation with employment growth and a statistically positive correlation with unemployment.

Energy Highs, Emerging Markets, and International Elections

Commodity markets saw Chevron and ExxonMobil hit all-time highs on Monday, with coverage scheduled for Tuesday morning on Morning Call with Morgan Brennan. In contrast, communication services hit lows not seen since June 2025, with CNBC data guru Gina Francolla noting that AppLovin and T-Mobile reached 52-week lows, leaving the sector down 15.5% from its May high.

Global markets digested major political shifts. Following the re-election of Luiz Inácio Lula da Silva in Brazil, the iShares MSCI Brazil ETF (EWZ) fell nearly 20% on its first trading day as markets reacted to the outcome, leaving the fund down 30% from its 52-week high. In Israel, a contentious national election was set for Tuesday, with the iShares MSCI Israel ETF (EIS) down 12% from its May high while maintaining an 11% year-to-date gain and a 22% increase over twelve months. Emerging markets also drew attention as World Bank Group president Ajay Banga scheduled a live appearance on Squawk Box during the 8 a.m. hour with Becky Quick, Andrew Ross Sorkin, and Joe Kernen, while the iShares MSCI Emerging Markets ETF (EEM) traded down 13.6% from its June high but up 13% for 2026.