From BigGo Finance · BigGo Finance · · 1m
S&P 500 Reverses After Semiconductor Sell-Off
Equal-weighted S&P 500 surges 2.5% as semiconductor stocks drop 12% ahead of midterms.
In brief
Equal-weighted S&P 500 surges 2.5% as semiconductor stocks drop 12% ahead of midterms. The equal-weighted S&P 500 gained 2.5% in October while the standard S&P 500 fell 0.9%, driven by a semiconductor sell-off and rotation into energy and consumer staples. Originally reported by BigGo Finance.
S&P 500 Reversal
The equal-weighted S&P 500 gained 2.5% over the past month while the standard S&P 500 fell 0.9%.
Semiconductor Sell-Off
The PHLX Semiconductor Index dropped 12% in October as investors shifted capital from tech stocks.
Energy and Consumer Staples Rise
Energy stocks gained 13% and consumer staples rose 9% in October, marking their best monthly performance in nearly five years.
Market Rotation
Investors rotated from semiconductor stocks to energy and consumer staples ahead of the Nov. 3 midterm elections.
Historical Context
Midterm years historically show weak returns followed by gains of about 14.5% over the next 12 months.
2018 Election Impact
The 2018 midterms led to a bear market that bottomed on Christmas Eve, contrasting with the current trend.
The essence
The equal-weighted S&P 500 gained 2.5% in October while the standard S&P 500 fell 0.9%, driven by a semiconductor sell-off and rotation into energy and consumer staples.
