Equal-Weight S&P 500 Eyes Biggest Monthly Reversal Since 1990 as Chip Stocks Drop 12%
Updated
Updated · Yahoo Finance · Oct 27
Equal-Weight S&P 500 Eyes Biggest Monthly Reversal Since 1990 as Chip Stocks Drop 12%
3 articles · Updated · Yahoo Finance · Oct 27
Summary
A roughly 8.5-point swing has put the equal-weight S&P 500 on track for its biggest one-month reversal versus the benchmark index since at least 1990.
September left the equal-weight index trailing by 4.5 points, but through Monday it led by about 4 points as the AI sell-off hammered semiconductor shares and stalled the cap-weighted S&P 500.
The PHLX Semiconductor Index is down about 12% in October even after Monday's bounce, while money rotated into Energy, up 13%, and Consumer Staples, up 9% and headed for their best month in nearly five years.
That rotation also puts equal weight on pace for its first year beating the S&P 500 since 2022, though Monday's chip rebound barely changed the month's gap.
History offers mixed comfort: since 1950, midterm years have delivered a median 1% S&P 500 gain, but the index has been higher one year after all 19 midterm elections.