The S&P 500 closed the week at 7,623.68, down 35.76 points, or 0.47%, from October 16 to October 23. Breadth did not match the headline: 331 of the index's 503 members finished higher, and the equal-weight version of the index rose 1.08% even as the cap-weighted number fell. Concentration ran at 117%, and the index's own mode flagged this as a divergence week, meaning a small group of large names pulled the average down while most stocks went the other way.
The drag came from communication services and chips. Meta Platforms subtracted 17.17 points on a 9.4% decline, Alphabet's two share classes took off 13.9 and 10.84 points respectively on losses of 5.98% and 5.83%; added together, the two Alphabet classes removed 24.74 points from the index this week. Nvidia shed 8.74 points and Lam Research, down 12.82%, cost the index 4.92 points. On the other side, Apple added 7.53 points on a 1.24% gain, Tesla added 5.79 points, and security software names Palo Alto Networks and CrowdStrike contributed 3.3 and 3.18 points on gains of 11.27% and 13.27%.
The Dow
The Dow closed at 52,215.00, up 212.59 points, or 0.41%, with 18 of 30 members higher on the week. Concentration came in at 135% and the index's mode read narrow, meaning the week's direction rested on fewer names than usual even though the equal-weight measure also gained, up 0.97%.
IBM did the heaviest lifting, adding 127.31 points on a 9.23% gain. UnitedHealth added 99.02 points, Home Depot 60.62, Honeywell 57.89, and Travelers 51.95. All of that was needed to offset Caterpillar, which fell 5.99% and subtracted 260.09 points on its own, a bigger single drag than the Dow's entire net move. Alphabet, counted once under its Dow-listed class, cost the index 121.13 points, while JPMorgan Chase, Goldman Sachs, and Microsoft also finished lower. This is the clearest split from the S&P 500's story: the Dow's gain came from industrial and healthcare strength overpowering a brutal Caterpillar decline, while the S&P's loss came from communication-services and chip weakness overpowering broad gains elsewhere.
The Nasdaq 100
The Nasdaq 100 closed at 28,957.53, down 230.02 points, or 0.79%, with only 53 of 101 members higher. Concentration reached 161%, the highest of the three indexes this week, and the equal-weight version was essentially flat at 0.09%, underscoring how much of the move traced back to just a few mega-cap names.
Alphabet's two classes together subtracted 279.19 points, more than the index's entire net decline, with Meta Platforms adding another 90.7 points of drag. Lam Research cost 21.39 points and Nvidia 18.91. Offsetting some of that, Apple added 65.27 points, Tesla 41.77, Space Exploration Technologies 39.13, Palo Alto Networks 22.74, and CrowdStrike 21.5. The divergence from the S&P 500 is one of degree: the same Alphabet and Meta weakness that dented the broader index did far more damage here because those names carry more weight in the Nasdaq 100, while chipmaker weakness outside Nvidia barely registered in the S&P's own sector mix.
The sectors
Across the eleven sectors, seven finished higher and four lower for the week, with gains concentrated in defensive and cyclical groups and losses concentrated in two corners: communication services and industrials.
Energy led the week, up 1.58%, adding 1.08 points, with Chevron contributing 0.47 points on a 3.65% gain. Health care followed close behind, up 1.45%, with Johnson & Johnson the top contributor at 0.54 points.
Communication services was the week's weakest sector by a wide margin, down 4.35% and off 4.8 points, with Meta Platforms the single biggest drag at 2.55 points on its 9.4% decline. Industrials were the only other sector with a significant loss, down 1.87%, with General Electric off 8.98% and subtracting 1.11 points.
The payload did not include percentile figures for any of the three indexes this week, so there is no basis here for calling this move large or small against the past year. What the numbers do show plainly is a market where most individual stocks advanced while a concentrated group of communication-services and chip names set the headline tone.
The numbers
- The S&P 500 closed at 7,623.68, down 35.76 points, or 0.47%, for the week.
- The Dow closed at 52,215.00, up 212.59 points, or 0.41%, for the week.
- The Nasdaq 100 closed at 28,957.53, down 230.02 points, or 0.79%, for the week.
- 331 of the S&P 500's 503 members rose on the week even as the index fell, and the equal-weight S&P 500 gained 1.08%.
- The Nasdaq 100 showed 161% concentration, the highest reading of the three indexes, with its equal-weight version nearly flat at 0.09%.
- Alphabet's two share classes together subtracted 279.19 points from the Nasdaq 100 and 24.74 points from the S&P 500 this week.
- Caterpillar was the Dow's biggest single drag, falling 5.99% and costing the index 260.09 points, more than the Dow's entire net gain of 212.59 points.
- Energy was the week's strongest sector, up 1.58%, led by Chevron; communication services was the weakest, down 4.35%, led lower by Meta Platforms' 9.4% decline.
From Babylon Burns
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