S&P 500 And AI Stocks Spooked Ahead Of Halloween - Why Bullish Trends Lie Ahead

What happened: October brought sharp sector rotation, with tech and AI stocks selling off while energy, defensives, and value outperformed and the S&P 500 traded modestly lower. Key numbers: Inflation persists above 3%. Valuations compressed to near 18x P/E. Defensives posted their best monthly gains versus tech since the early 2000s. Why it matters: Despite headline index weakness, S&P 500 earnings estimates are rising and seasonality favors a bullish November-December, per the article.

October brought sharp sector rotation, with tech and AI stocks selling off while energy, defensives, and value outperformed and the S&P 500 traded modestly lower.

Despite headline index weakness, S&P 500 earnings estimates are rising and seasonality favors a bullish November-December, per the article.