What a difference a weekend makes. After Friday’s steep drop, markets bounced back Monday as President Trump appeared to ease up on his threat to hike tariffs 100% on Chinese goods. Investors took the shift as a sign that negotiations may still be on the table. Here’s what’s happening this week…

• October heralds a new earnings season, and this week starts it off with financial fireworks. This morning, reports are due from JP Morgan Chase, Wells Fargo, Goldman Sachs, Blackrock, Citigroup, Johnson & Johnson, Ericsson, Domino’s Pizza, and Albertsons, followed Wednesday by ASML Holding, Bank of America, Morgan Stanley, Abbott Laboratories, Progressive, Prologis, PNC Financial, Kinder Morgan, United Airlines, and Synchrony Financial. Thursday numbers are up for TSMC (Taiwan Semiconductor), Charles Schwab, Bank of New York Mellon, U.S. Bancorp, Infosys, CSX, and The Travelers, followed Friday by American Express, Truist Financial, Huntington Bancshares, Regions Financial, Ally Financial, and Comerica. *

• The federal government shutdown enters its 14th day today, with Vice President JD Vance warning of “painful” job cuts if the deadlock continues. Following the Columbus Day holiday, the Senate is expected to vote today on a short-term funding measure aimed at restarting stalled negotiations. More than 4,000 federal employees may have been laid off last Friday, including 1,446 Treasury staff and up to 1,200 Health and Human Services workers who received reduction-in-force notices. One market analytics firm now estimates a 48% probability that this shutdown could surpass the 35-day record set in 2018–2019, raising concerns about broader economic ripple effects if the impasse drags on. **

• The IRS has announced key updates for the 2026 tax year, including a major change to the Child Tax Credit (CTC) under the One, Big, Beautiful Bill Act. The credit will be permanently set at $2,200 per child starting in 2026, with $1,700 refundable and future increases tied to inflation. Income phaseouts remain at $200K for single filers and $400K for joint filers, without inflation adjustments. Eligibility rules remain unchanged, and families must file taxes—even with low income—to claim the credit. ***

Investment Advisory Services offered through Miramontes Capital, LLC. Securities offered through Balanced Security Planning, Inc. Member FINRA/SIPC. Miramontes Capital, LLC and Balanced Security Planning, Inc. are separate companies affiliated through common control. This newsletter is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Miramontes Capital, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital, LLC unless a client service agreement is in place.