- Tech dragged the market lower. The Nasdaq Composite fell 2.2% just after Friday’s opening bell and the S&P 500 lost 1.2%, while the Dow shed 155 points, or 0.3%, as investors rotated out of tech after disappointing results from Amazon and Intel.
- Consumer staples hit a record. State Street’s Consumer Staples Select Sector SPDR ETF (XLP) rose nearly 2% to an intraday all-time high of $90, with Altria up more than 2% to a 52-week high of $79, Philip Morris up 1.6% to a 52-week high of $214 and Keurig Dr Pepper up 1.4% to a 52-week high of $36.
- Health care joined in. State Street’s Health Care Select Sector SPDR ETF (XLV) gained 1.5% to a 52-week high of $187, with top holdings Eli Lilly, Johnson & Johnson, Pfizer and Gilead all hitting 52-week highs. Regeneron jumped more than 12% after a strong third-quarter report.
- Precious metals offered no shelter. Gold futures dropped to a low of $3,946, the lowest since Nov. 5, 2025, and silver futures hit $49.66, the lowest since Nov. 24, 2025. Gold has fallen from above $5,300 earlier this year, and silver is down more than 50% since topping $100 in February.
What Happened?
Friday’s session showed a clear shift from growth to safety. Intel fell about 28% and Amazon, Tesla, Nvidia and Microsoft dropped 2% to 4% early on, while defensive sectors that hold up in slowdowns gained, according to CNBC and CoinDesk. Bonds also rallied, with the 2-year Treasury yield on track to close below its 50-day moving average of 4.609% for the first time since Aug. 18.
Why It Matters?
The rotation suggests investors are pulling back from crowded AI trades and seeking companies with steady demand, such as food, tobacco and drugmakers. Falling yields, with the 10-year Treasury down more than 5 basis points to 4.933%, also help dividend-paying defensive stocks. The drop in gold, despite the risk-off mood, shows that traditional havens are not moving together, as metals extend a months-long slide.
What’s Next?
Investors will look to next week’s data for direction, including September JOLTS job openings on Tuesday and the October nonfarm payrolls report on Friday, along with Tuesday’s midterm elections. Fed policy is also in focus: the odds of a December rate hike fell to 70% from nearly 90% during Fed Chair Kevin Warsh’s press conference on Wednesday, according to CoinDesk.
Affected Tickers and Coins: XLP, XLV, MO, PM, KDP, REGN, GLD, SLV
