Stocks Pause as Bonds Weaken and Oil Breaks Higher
Monday’s trading session was characterized by indecision, with the Dow, S&P 500, NASDAQ, Russell 2000, TSX 60, and total market ETF all recording inside days. Stock index futures were modestly lower heading into Tuesday, while crude oil surged higher and gold declined. Semiconductor stocks reversed from their early strength to close near the previous session’s low, leaving Friday’s trading range as an important reference point for the next market move.
The bond market weakened as yields rose, with TLT pulling back and XBB returning to a sell signal. Weakness in emerging-market and junk bonds continued to suggest a risk-off environment. The VIX remained an important indicator to watch, while Tuesday’s market direction could be heavily influenced by crude oil’s strength and its potential impact on Canadian energy stocks. Investors should monitor key support levels and signal changes across major indices, sectors, bonds, and commodities.
Stephen Whiteside
Tuesday, October 20, 2026
