Wall Street Mixed 10/21/2026: Oil Reverses, KOSPI Plunges

1. US STOCKS END MIXED ON OCTOBER 20
Dow Jones rose 1.02% to 52,495.88; S&P 500 gained 0.28% to 7,712.57; Nasdaq Composite slipped 0.02% to 26,424.82. Capital rotated sharply into healthcare and value names: Equifax +11.3%, Hasbro +11.2%, 3M +5% on strong earnings; Eli Lilly +3.49%, UnitedHealth +3.04%, Merck +3.25%. Large-cap tech lagged: Apple -1.00%, Meta -1.59%, Microsoft -0.31%, Nvidia -0.29%.

The session marked a clear divergence as investors shifted away from high-growth technology toward defensive and lower-valuation assets. The Nasdaq Golden Dragon China Index still rose 0.69%, with XPeng +7% and Li Auto +5%, showing continued interest in Chinese shares listed in the US.

2. OIL PRICES REVERSE ON US-IRAN TALK REPORTS
Brent settled down 0.69% at $108.79 per barrel after touching a five-month high of $111.99; WTI December contract fell 72 cents to $97.82. Prices dropped after Al-Araby Al-Jadeed reported Qatar and Pakistan presented a US-Iran compromise proposal carrying American approval and preliminary Iranian consent; WTI briefly fell as low as $95.25.

Officials subsequently denied that a deal was close, while Iran's president stated that sanctions, pressures and threats must first be lifted. Supply concerns remained elevated as Houthi forces attacked Saudi infrastructure and roughly 18 vessels were affected in two weeks, maintaining a risk premium in oil prices.

3. US HOUSING MARKET SIGNALS WEAKNESS
Pending home sales in September fell 7.3% month-over-month, far worse than the -0.5% forecast, dropping the index to 66.0 – the lowest level since data began in 2001. Housing starts also declined 5.2% to an annualized rate of 1.221 million units, a four-month low.

This data shows high interest rates are eroding home-buying power more severely than expected, adding pressure on Federal Reserve policy expectations in upcoming sessions. The bond market reacted with the 10-year Treasury yield falling approximately 3 basis points to 5.111-5.115%.

4. KOSPI PLUNGES 3.73% ON AI INVESTMENT CONCERNS
South Korea's KOSPI index fell 3.73% to 5,552.74 points; KOSDAQ lost 3.33% to 781.97. Samsung Electronics dropped 2.98% and SK Hynix declined 4.23% amid worries about AI investment prospects and heavy selling by both foreign investors and domestic institutions.

The plunge came as Korean AI firm Elice/Alice slumped more than 30% on its listing debut, dampening tech sentiment early in the US session as well. Other Asian markets also declined: Hang Seng -1.32%, Nikkei 225 -1.3%, ASX 200 -0.33%.

5. NETFLIX DROPS AFTER HOURS, EARNINGS WAVE AHEAD
Netflix shares fell approximately 5% in after-hours trading following the October 20 close. Major companies reporting earnings on October 21 include Meta, Tesla, Lam Research, IBM and Texas Instruments.

The Netflix sell-off suggests investors hold high expectations for user growth and profit margins from technology platforms. Results from this group of companies will shape tech stock trends for the remainder of the week.

6. GEOPOLITICS: IEA READY TO RELEASE RESERVES, UK SUPPORTS SAUDI ARABIA
IEA chief Fatih Birol said the agency would consider releasing more oil from emergency reserves if needed. The UK Defence Ministry stated the Royal Air Force would conduct defensive missions in support of Saudi Arabia.

These developments reflect escalating tensions in the Middle East and the risk of global energy supply disruption. Investors are simultaneously pricing in a prolonged conflict scenario and the possibility of intervention by international organizations to stabilize markets.

Key event to watch today: Q3 earnings reports from Meta, Tesla, Lam Research, IBM and Texas Instruments after the US market close.

*Information compiled for reference, reflecting multiple sources at the time of publication.*