Average S&P 500 Stocks Outperform Index as Chip Shares Slide

Investors have shifted away from semiconductor companies and toward consumer staples and other sectors, pushing the average S&P 500 stock ahead of the broader index in October. According to Yahoo Finance calculations published October 27, 2026, the equal-weighted benchmark is on track for its largest monthly reversal against the standard S&P 500 since at least 1990.

The equal-weighted S&P 500, which gives each constituent the same weight regardless of company size, has gained an advantage of about 4 percentage points over the conventional index through Monday. In September, it lagged by 4.5 percentage points, marking a sharp change in market leadership within a single month.

Semiconductor shares have borne the brunt of the selling pressure. The PHLX Semiconductor Index fell about 12% in October despite a rebound Monday, according to the report. Meanwhile, the Energy Select Sector SPDR Fund rose 13%, and the Consumer Staples Select Sector SPDR Fund gained 9%.

Monday's session offered a temporary reversal of the broader trend. According to Yahoo Finance, 57 of the 60 stocks in its semiconductor basket advanced, allowing the conventional S&P 500 to outperform its equal-weighted counterpart for the day. The rally, however, did little to change October's overall performance gap.

Ryan Detrick, chief market strategist at Carson Group, highlighted the strength of companies outside the technology sector. Pool, recreational vehicle and boat manufacturers were among the market's strongest industry groups the previous week, reflecting demand for businesses beyond the artificial intelligence infrastructure trade.

Detrick has also pointed to historical patterns in midterm election years. In a post on X, he wrote, "Historically, you tend to see late October major lows in midterm years." He cited near-record positioning for further market declines as part of his assessment.

In a separate post on Friday, Detrick added, "we could be looking at another late October buying period." His comments came as investors weighed whether the recent market weakness could mark a turning point.

Historical market data compiled by Yahoo Finance show that midterm election years have been the weakest period in the four-year presidential cycle since 1950, with a median S&P 500 gain of about 1%. The equal-weighted index is also on course to outperform the standard benchmark for the first time since 2022.

The historical record has limits. The S&P 500 finished higher one year after each of the 19 midterm elections since 1950, but the path to recovery has not always been immediate. In 2018, stocks continued falling after the election, entered a bear market and did not reach a bottom until Christmas Eve.

The next US Election Day is November 3, 2026. The report noted that the sample of 19 elections is relatively small, particularly given that artificial intelligence-related stocks, which helped power the market's rally, are now among the areas facing pressure.