October Rotation Shifts Money Beyond AI Stocks
October rotation shifts money beyond AI stocks as Intel slumps and investors move into software, energy, defense and pharmaceuticals.
alex.trader24
Chief Market Analyst with over 15 years experience with candid commentary and focuses on daily market analysis and financial research writing
Oct 31 2026
$INTC Intel fell about 45% in October, from roughly $120 at the end of September to about $66. Roughly half the decline came on the final trading day, when the stock dropped about 28.6% following a weak fourth-quarter forecast. Management said computer manufacturers were reducing inventories because memory chip prices had surged, computers had become more expensive and customers were hesitating. $GOOGL Alphabet lost about 19% during the month.
The Nasdaq lost about 5.3% in October, its weakest month since March 2025, yet most large US stocks finished higher. The Dow Jones gained about 1.7%, the small-cap Russell 2000 rose 0.5%, and the S&P 500 declined about 0.9%. The gap between the Dow and the Nasdaq 100, which fell about 6.7%, reached approximately 8.4 percentage points in one month. This sharp sector rotation moved money out of AI giants and into established software companies, oil, defense and pharmaceuticals.
$ACN Accenture surged about 40.8%, leading the S&P 500 gainers as companies previously viewed as AI casualties moved to the top of the table. Quarterly revenue reached about $18.7 billion, exceeding expectations, and the company recorded a record level of large contracts. Its forecast for 3% to 6% growth in fiscal 2027 eased concerns that AI tools would replace consultants. Nevertheless, the stock remained down about 4% for the year.
$ROP Roper Technologies rose about 33.5%, while Intuit gained about 23.7%. Tyler Technologies, Gartner, FactSet and Fair Isaac each added more than 20%. Many entered October after a difficult year, with Intuit down roughly half since the start of the year and Fair Isaac down about 58%. With expectations so low, a reasonable earnings report was enough to send a stock sharply higher.
$PTC PTC rose about 39.4% for an entirely different reason: Schneider Electric of France announced it would acquire the company for approximately $22.6 billion. Accenture was therefore not alone among the strong software performers. Accenture, PTC and Hasbro each gained more than 35% during the turbulent month.
$APA APA gained about 27.2% as the Middle East war left a clear mark beyond software. Brent rose about 12% in October to a six-month high, benefiting energy stocks. ConocoPhillips gained about 23.1%, and EOG Resources rose about 20.2%. Refiners benefited from particularly wide margins. Further reading: The golden year for refiners: Who benefits most from the diesel crisis, and why investors in oil giants are cautious.
$LMT Lockheed Martin added about 25.1%, supported by demand for ammunition and defense systems. In pharmaceuticals, Eli Lilly rose about 22.5% to approximately $1,418 per share. Regeneron gained about 22.4%.
$HAS Hasbro gained about 35.8%, driven by record sales of Magic: The Gathering cards. Equifax also ranked among the gainers, rising about 34.5%. Established consumer companies attracted money as well.
$WMT Walmart rose about 18%, while Home Depot and Mastercard each gained about 16%. Higher oil prices, interest rates that could rise and expensive technology valuations pushed investors toward companies offering earnings stability and strong balance sheets. Meanwhile, crypto markets suffered a shock at the end of the month when a roughly $6.3 billion hack at Binance sent Bitcoin down to about $77,000 and dragged Coinbase more than 10% lower on the final trading day.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
