Key Takeaways
- The S&P 500 ETF (SPY) slipped 0.43% for the week while the small-cap Russell 2000 ETF (IWM) gained 1.95%, a notable split between large and small companies.
- Communication services, as measured by XLC, was the weakest sector at -4.35%, and markets closed sharply lower on Friday amid concerns about the AI outlook, as widely reported.
- Crude oil (USO) rose 4.8% for the week, supported by reports of a tanker struck in the Strait of Hormuz and news of higher WTI futures on Friday.
- Gold (GLD) fell 4.03% and silver (SLV) dropped 5.42%, a sharp reversal for precious metals.
- Dividend and low-volatility factor strategies led, with the dividend-growth ETF (SCHD) up 2.68% and the low-volatility ETF (USMV) up 1.69%.
- Long-term Treasuries (TLT) gained 1.61% as bonds broadly rose across the week.
Markets at a Glance
October 19 – October 23, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Oct 16, 2026) through the Oct 23, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
Weekly Recap
U.S. equities finished the week with modest losses at the headline level and wide dispersion underneath. The S&P 500 ETF (SPY) declined 0.43% and the Nasdaq 100 ETF (QQQ) fell 0.76%, while the Dow Jones ETF (DIA) rose 0.45% and the small-cap Russell 2000 ETF (IWM) climbed 1.95%. That spread between mega-cap technology and smaller companies was one of the defining features of the week.
International markets were mixed to lower. The international developed ETF (EFA) fell 0.88% and the emerging markets ETF (EEM) declined 1.32%, with the China ETF (MCHI) down 4.30% and the India ETF (INDA) off 2.50%. Brazil (EWZ) and Australia (EWA) bucked the trend, rising 1.79% and 1.39% respectively.
What Moved Markets This Week
The week opened on a firmer note. According to CNBC, the Nasdaq climbed more than 1% on Monday, October 19, with the S&P 500 gaining 0.41% as chip-related names rebounded on AI investment optimism. That tone faded later in the week. As reported by TheStreet, technology and AI-related shares came under pressure Thursday and Friday, and CNBC reported that the Dow Jones Industrial Average fell 652.82 points, or 1.23%, on Friday, October 23, while the S&P 500 slipped 0.52% and the Nasdaq Composite lost 0.21%.
Energy was a standout. CNBC reported West Texas Intermediate crude futures rose 3.8% on Friday to $103.27 per barrel, the highest settle since April, and Investrade reported a tanker was struck by an unknown projectile in the Strait of Hormuz near Oman that day, developments that coincided with the rise in oil prices. Among index-relevant corporate news, CNBC reported that American Express, a Dow component, fell more than 3% on Friday after announcing it was cutting about 5% of its global workforce. Separately, China's third-quarter GDP grew 4.5% year over year, slightly above consensus, according to economic-calendar coverage, though the China ETF (MCHI) still finished the week lower.
Sectors and Commodities
Sector results reflected the week's crosscurrents. Energy (XLE) led at 1.58%, consistent with the move in crude oil, and the broad crude oil ETF (USO) rose 4.8%. Healthcare (XLV) gained 1.45% and real estate (XLRE) added 1.00%, while defensively oriented consumer staples (XLP) and utilities (XLU) rose 0.74% and 0.88%. On the softer side, communication services (XLC) fell 4.35%, the weakest sector in the data, followed by industrials (XLI) at -1.87%.
Commodities told a divided story. While crude oil surged, precious metals reversed sharply, with gold (GLD) down 4.03% and silver (SLV) down 5.42%. The broad commodities ETF (DJP) slipped 0.61%, and REITs (VNQ) gained 1.00%.
Fixed Income and Rates
Bonds posted broad gains for the week. The U.S. Aggregate Bond ETF (AGG) rose 0.61%, and longer-dated instruments led, with the long-term Treasury ETF (TLT) up 1.61% and the intermediate Treasury ETF (IEF) up 0.70%. Short-term bonds (SHY) added 0.17%, investment-grade corporates (LQD) rose 0.42%, and high-yield bonds (HYG) gained 0.25%. Over the trailing year, the longer-maturity segments remain negative, with TLT down 7.54% and IEF off 3.10%, a reminder that the recent weekly gains sit within a longer stretch of pressure on rate-sensitive bonds.
Factors and Style
Factor and style results underscored a tilt toward defensive and value-oriented areas. Factors are simply rules-based ways of grouping stocks by shared traits, such as paying high dividends or showing lower price swings. This week, dividend-growth stocks (SCHD) led all factors at 2.68%, followed by low volatility (USMV) at 1.69% and equal weight (RSP) at 1.14%, the latter giving each company similar influence rather than weighting by size. High dividend (VYM) added 0.78% and value (VLUE) rose 0.51%.
The more growth-oriented and aggressive factors lagged. High beta (SPHB), which tracks stocks that tend to move more than the market, fell 1.73%, growth (VUG) declined 1.32%, and momentum (MTUM), which follows recent winners, slipped 1.24%. Quality (QUAL) eased 0.96%. The style box echoed this pattern: large value (IWD) rose 0.66% while large growth (IWF) fell 1.51%, and small value (IWN) gained 2.02% against small growth (IWO) at 1.92%. Over the trailing year the value-growth gap is pronounced, with IWD up 28.01% versus IWF at 2.47%.
What This Means for Long-Term Investors
This week illustrated how much movement can hide beneath a nearly flat headline: the S&P 500 ETF (SPY) fell less than half a percent, yet small-cap stocks rose nearly 2%, energy jumped while gold and silver dropped more than 4%, and value factors gained while growth and high-beta names declined. For long-term, diversified investors, that dispersion is a practical example of why holding a mix of asset classes, sectors, and styles can smooth the ride, since the areas lagging in one week, such as technology and precious metals here, were offset by gains in bonds, dividend strategies, and energy.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (October 16, 2026) through the October 23, 2026 close; month and year figures are anchored to the same ending close. Dates reflect actual trading sessions, so market holidays can shift them.
This commentary is provided by Rubric Advisors, a California-registered investment adviser (registration does not imply a certain level of skill or training), for informational and educational purposes only. It does not constitute investment, legal, or tax advice, is not a recommendation or offer to buy or sell any security, and should not be relied upon as the sole basis for an investment decision. Market segment performance is measured using exchange-traded fund (ETF) proxies, which reflect fund expenses and may differ from their underlying indices; figures are unaudited and drawn from third-party data believed reliable but not guaranteed. Past performance does not guarantee future results. All investing involves risk, including possible loss of principal. Options strategies are not suitable for all investors, and private market investments are available only to qualified clients.