Big Tech just went from crushing the average stock to losing to it: Chart of the Day
Big Tech companies are lagging behind the wider market after a severe semiconductor and artificial intelligence selloff that erased trillions in market value. Investors are rotating funds into sectors like energy, consumer staples, and Treasury bonds following disappointing third-quarter earnings reports from major tech players including Alphabet, Amazon, and Intel. This shift produced an approximately 8.5-point swing, driving the equal-weight S&P 500 toward its sharpest one-month reversal and best weighted index outperformance relative to the benchmark index since 1990.
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- ✓ Alphabet shares tumbled after the company reported a disappointing third quarter and a larger negative free cash flow than analysts expected.
- ✓ The equal-weight S&P 500 experienced an 8.5-point swing, putting it on track for its sharpest one-month reversal versus the benchmark index since at least 1990.
- ✓ Investors swapped artificial intelligence chip stocks for consumer staples, energy, and safe-haven Treasurys following grim earnings reports from companies like Amazon and Intel.
What changed
A brutal chip sell-off and disappointing third-quarter results from major tech giants caused Big Tech stocks to go from outperforming the average stock to losing ground against it.
Live updates
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Big Tech Loses Ground as Equal-Weight S&P 500 Surges
Big Tech companies are lagging behind the wider market after a severe semiconductor and artificial intelligence selloff that erased trillions in market value. Investors are rotating funds into sectors like energy, consumer staples, and Treasury bonds following disappointing third-quarter earnings reports from major tech players including Alphabet, Amazon, and Intel. This shift produced an approximately 8.5-point swing, driving the equal-weight S&P 500 toward its sharpest one-month reversal and best weighted index outperformance relative to the benchmark index since 1990.
Why it matters
The broader equity market is experiencing a significant rotation away from high-flying artificial intelligence and chip stocks into defensive safe havens. Major technology firms faced intense pressure as Wall Street reassessed valuations following weaker-than-expected financial disclosures and heavier capital spending. Market analysts note that consumer staples are tracking toward their strongest monthly performance in nearly five years amid the broader tech correction.
What is confirmed
- Alphabet shares tumbled after the company reported a disappointing third quarter and a larger negative free cash flow than analysts expected.
- The equal-weight S&P 500 experienced an 8.5-point swing, putting it on track for its sharpest one-month reversal versus the benchmark index since at least 1990.
- Investors swapped artificial intelligence chip stocks for consumer staples, energy, and safe-haven Treasurys following grim earnings reports from companies like Amazon and Intel.
Still unconfirmed
- Tech stocks were on course for a more than $1 trillion drop when the New York opening bell rang.
What to watch next
- Further fourth-quarter capital spending guidance updates from major hyperscalers
- Market reaction to incoming macroeconomic data regarding consumer staples and treasury yields
confidence 90%Sources used for this update (14)
- MarketWatch — The rest of the market is leaving Big Tech behind after a historic comeback
- Yahoo Finance — Big Tech just went from crushing the average stock to losing to it: Chart of the Day
- Reuters — Breakingviews - COMMENTARY: Tech stocks sound an uncomfortable 2008 echo
- BigGo Finance — Chip Selloff Hands Equal-Weight S&P 500 Its Sharpest One-Month Comeback Since 1990
- TradingView — S&P 500 Equal Weight on track for best weighted index outperformance since 2009
- finance.yahoo.com — Big Tech just went from crushing the average stock to losing ...
- www.cnbc.com — Stock market today: Live updates - CNBC
- www.nbcnews.com — Tech stocks set to wipe out $1 trillion as AI boom fears deepen
- biztoc.com — Big Tech just went from crushing the average stock to losing ...
- www.zetik.com — Equal-Weight S&P 500 Eyes Biggest Monthly Reversal Since 1990 ...
- www.businessinsider.com — Stock Market Today: Nasdaq Plunges 3% After Grim Intel ...
- finance.yahoo.com — Big Tech Stocks Have Never Looked Cheaper. Is the Magnificent ...
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