Key Takeaways
- The Federal Open Market Committee held the overnight funds rate in a range of 3.75% to 4% on October 28, with two voters dissenting in favor of a quarter-point increase, according to CNBC.
- Disappointing large-cap technology results, including an Alphabet earnings miss and sharp premarket declines in Intel and Amazon shares as widely reported, coincided with the Communication Services sector ETF (XLC) falling 5.34% and the Technology sector ETF (XLK) falling 2.02%.
- U.S. large-cap stocks, as measured by the S&P 500 ETF (SPY), eased 0.55% while the Nasdaq 100 ETF (QQQ) fell 1.97%, yet the Russell 2000 ETF (IWM) rose 1.31%.
- Value outpaced growth across market caps, with the Large Value ETF (IWD) up 0.50% against a 1.67% decline for the Large Growth ETF (IWF).
- Brazil equities, as measured by the Brazil ETF (EWZ), dropped 23.78%, the largest single-market move in the data, while gold (GLD) fell 2.93% and silver (SLV) fell 8.52%.
Markets at a Glance
October 26 – October 30, 2026
1-week total return by segment, via ETF proxies, measured from the prior week’s final close (Oct 23, 2026) through the Oct 30, 2026 close. Bars share one scale across groups.
Equities
Bonds
Sectors
Alternatives
Factors
The Week in Review
Returns diverged sharply by style and sector during the week ending October 30, 2026. Headline U.S. large-cap and technology benchmarks declined, with the S&P 500 ETF (SPY) down 0.55% and the Nasdaq 100 ETF (QQQ) down 1.97%. The Dow Jones Industrial Average ETF (DIA) slipped 0.82%. Beneath those index-level figures, however, the picture was more mixed. The Russell 2000 ETF (IWM) rose 1.31% and the Russell 1000 ETF (IWB) gained 1.24%, pointing to broader participation outside the largest growth names.
Internationally, the Developed Markets ETF (EFA) added 0.75%, while the Emerging Markets ETF (EEM) fell 1.56% and the MSCI World ETF (URTH) edged down 0.20%. The spread between falling megacap technology and rising cyclical and smaller-company segments was the defining feature of the week.
What Moved Markets This Week
The Federal Reserve was in focus midweek. According to CNBC, the Federal Open Market Committee held the overnight funds rate in a range between 3.75% and 4% on October 28, with two of the twelve voters, Governor Lisa Cook and Cleveland Fed President Beth Hammack, dissenting in favor of a quarter-point increase. The post-meeting statement described inflation as remaining elevated and signaled the committee was awaiting the accumulation of more information before further action.
Economic data filled out the picture. As reported by Yahoo Finance, headline PCE inflation rose 3.6% year over year in September, while core PCE rose 0.3% on the month and 3.1% year over year, with the monthly core figure coming in below the consensus estimate. Second-quarter GDP increased 2.2%. Bloomberg reported that U.S. labor costs grew slower than inflation for a second straight quarter, with the employment cost index falling 0.4% over the twelve months ended in September once adjusted for inflation.
Corporate results drove the late-week equity weakness. Yahoo Finance reported that Alphabet posted adjusted third-quarter earnings of $2.12 per share, missing the consensus estimate and declining 26% year over year, and Charles Schwab noted that Intel fell roughly 25% and Amazon fell nearly 7% before the open on October 30. Bloomberg described disappointing technology results as spurring the worst equity drop since June, with the Nasdaq 100 sinking 3.5% and the S&P 500 falling 1.8% in a single session. Abroad, the Bank of Canada raised rates as expected and the Reserve Bank of New Zealand held steady.
Sectors and International Markets
Sector dispersion was wide. The strongest sector in the data was Industrials (XLI) at 3.35%, followed by Healthcare (XLV) at 3.10% and Materials (XLB) at 2.81%. Defensive and income-oriented areas also advanced, with Utilities (XLU) up 2.09%, Real Estate (XLRE) up 1.41%, and Consumer Staples (XLP) up 1.31%. On the other side, Communication Services (XLC) fell 5.34%, the weakest sector in the data, and Technology (XLK) declined 2.02%, reflecting the concentration of the week's disappointing results in those areas.
Across countries, Germany (EWG) rose 2.42%, India (INDA) gained 2.71%, and Switzerland (EWL) added 2.03%. The most dramatic move was in Brazil (EWZ), which dropped 23.78% for the week. Taiwan (EWT) fell 3.63% and Japan (EWJ) declined 1.25%, while China (MCHI) was roughly flat at 0.14%.
Fixed Income and Commodities
Bonds posted modest gains across the board as rates eased. The U.S. Aggregate Bond ETF (AGG) rose 0.38%, the Intermediate Treasury ETF (IEF) added 0.78%, and the Long-Term Treasury ETF (TLT) gained 0.18%. Investment-grade corporates (LQD) rose 0.44% and high-yield bonds (HYG) rose 0.49%, while short-term bonds (SHY) added 0.25%.
Commodities were broadly lower. Gold (GLD) fell 2.93% and silver (SLV) dropped 8.52%, the largest decline among the commodity proxies. The broad commodity basket (DJP) fell 2.27% and crude oil (USO) slipped 0.79%. Real estate as measured by the REIT ETF (VNQ) bucked the trend, rising 1.37%.
Factors and Style
Factor strategies isolate specific characteristics within the market, and this week they separated clearly. Value, which favors stocks trading at lower prices relative to fundamentals, held up: the Value factor ETF (VLUE) rose 0.63%, High Dividend (VYM) rose 1.39%, and Dividend Growth (SCHD) rose 1.47%. Equal Weight (RSP), which weights companies evenly rather than by size, gained 0.82%, a reminder that the typical stock fared better than the cap-weighted average.
Growth-oriented and trend-following factors lagged. The Growth factor ETF (VUG) fell 1.95%, and Momentum (MTUM), which tilts toward recent winners, fell 1.82% as those recent winners pulled back. Quality (QUAL) was nearly flat at negative 0.15% and Low Volatility (USMV) was essentially unchanged at negative 0.03%. The style box told the same story: Large Value (IWD) rose 0.50% while Large Growth (IWF) fell 1.67%, and Small Growth (IWO) rose 1.84% even as its large-cap counterpart declined.
What This Means for Long-Term Investors
This week illustrated how concentrated weakness in a handful of large growth names can pull headline indices lower even as most sectors, value stocks, small-caps, and bonds post gains, with the equal-weight ETF (RSP) up 0.82% while the Nasdaq 100 ETF (QQQ) fell 1.97%. For diversified, long-horizon investors, that gap between the cap-weighted average and the broader market is one reason advisers monitor exposure across styles, sectors, geographies, and asset classes rather than a single index, since the segments that lag in one week often differ from those that lag in the next.
Performance figures reflect ETF proxies for each market segment. Weekly returns are measured from the prior week’s final close (October 23, 2026) through the October 30, 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.