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U.S. stocks tumbled in October, with the Nasdaq hardest hit by rising rate worries and a tech sell-off.
Energy and tanker shipping ETFs led October's market winners.
Cybersecurity and cloud ETFs gained despite the broader tech sell-off.
U.S. stocks closed October with sharp losses as disappointing earnings from Amazon (AMZN - Free Report) and Alphabet (GOOG - Free Report) , (GOOGL - Free Report) reignited concerns over the mounting costs of Big Tech's artificial intelligence (AI) investments and the potential returns on such massive spending (read: Top ETF Stories of October).
Nasdaq Suffers Its Worst Monthly Performance Since March 2025
Despite the Dow's resilience, October proved challenging for the broader market. The Dow advanced 1.5% for the month, but the Nasdaq Composite and S&P 500 lost 5.2% and 1.2%, respectively. The Nasdaq recorded its steepest monthly decline since March 2025, as quoted on Yahoo Finance.
The latest bout of selling followed earnings reports from Amazon and Alphabet that failed to meet certain market expectations, raising questions about whether their enormous AI infrastructure investments would generate adequate returns.
Amazon shares fell 2% on Oct. 30, 2026, while Alphabet extended its losses after recording its steepest single-day decline in more than two decades on Oct. 29. Meanwhile, Intel (INTC - Free Report) added to the technology sector's woes.
The chipmaker's shares came under severe pressure after its fourth-quarter outlook fell short of Wall Street expectations, with the stock plunging as much as 29% on Oct. 30.
AI’s Cursed October
The AI trade has struggled in October for multiple reasons. The month saw AI-driven vulnerabilities that led to a series of high-impact cybersecurity incidents, a trend dubbed "Black October." The term refers to a series of high-impact cybersecurity incidents in October 2026 that were accelerated by AI.
Meanwhile, the AI debt boom emerged as a key concern. The 10-year Treasury yield climbed to around 5.3% at the start of the month, reviving concerns about borrowing costs and the massive debt financing used to build AI data centers.
Investors have constantly reassessed technology valuations amid rising rates and heavy corporate borrowing. Roundhill Generative AI & Technology ETF (CHAT - Free Report) is off 18% over the past month (as of Oct. 30, 2026).
Energy Stocks Offer Some Relief
Energy shares provided a rare bright spot amid the broader market weakness. ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) briefly touched record highs after both oil majors reported stronger earnings, thanks to wider refining margins amid the ongoing conflict in the Middle East.
Bitcoin Falls as Binance Hack Rattles Crypto Market
The weakness extended beyond equities, with cryptocurrencies also coming under pressure. Bitcoin has declined more than 7% over the past month. Digital assets faced selling pressure following a reported $6.3 billion hack involving cryptocurrency exchange Binance on Oct. 30. The incident was described as the largest cryptocurrency heist in history. iShares Bitcoin Trust ETF (IBIT - Free Report) is off 8.4% over the past month.
ETF Winning Areas of October
Against the somber backdrop described above, the following exchange-traded funds (ETFs) emerged as winners in October.
The closure of the Strait of Hormuz, along with ongoing disruptions in the Red Sea, has disrupted key shipping routes, driving a sharp surge in freight rates. Elevated shipping rates have positioned the shipping fund BWET as a clear beneficiary.
United States Brent Oil Fund LP (BNO - Free Report) – Up 18.8%
Due to the ongoing tensions in the Middle East, Brent crude futures climbed to around $113 per barrel, while West Texas Intermediate (WTI) crude futures reached around $103 per barrel (at the time of writing).
It looks to offer long-term growth of capital through exposure to the energy and infrastructure helping drive AI growth.
iShares Cybersecurity and Tech ETF (IHAK - Free Report) – Up 8.8%
Cybersecurity stocks are having a strong year, due to rising AI-related spending and growing warnings from technology leaders about the risks posed by powerful AI agents. The emergence of advanced AI models has raised concerns about increasingly sophisticated cyberattacks, making cybersecurity investments even more crucial. Note that IHAK is up about 66% this year.
The widespread adoption of remote connectivity continues to fuel the need for scalable and reliable cloud solutions. In second-quarter 2026, global cloud infrastructure service spending grew to $143.4 billion (an increase of more than $43 billion from second-quarter 2025), marking the highest growth rate in eight years, per Synergy Research. Some major cloud providers recently revealed that AI cloud capacity is sold out through next year.
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Image: Bigstock
5 ETF Winners of a Scary October
Key Takeaways
U.S. stocks closed October with sharp losses as disappointing earnings from Amazon (AMZN - Free Report) and Alphabet (GOOG - Free Report) , (GOOGL - Free Report) reignited concerns over the mounting costs of Big Tech's artificial intelligence (AI) investments and the potential returns on such massive spending (read: Top ETF Stories of October).
Nasdaq Suffers Its Worst Monthly Performance Since March 2025
Despite the Dow's resilience, October proved challenging for the broader market. The Dow advanced 1.5% for the month, but the Nasdaq Composite and S&P 500 lost 5.2% and 1.2%, respectively. The Nasdaq recorded its steepest monthly decline since March 2025, as quoted on Yahoo Finance.
The latest bout of selling followed earnings reports from Amazon and Alphabet that failed to meet certain market expectations, raising questions about whether their enormous AI infrastructure investments would generate adequate returns.
Amazon shares fell 2% on Oct. 30, 2026, while Alphabet extended its losses after recording its steepest single-day decline in more than two decades on Oct. 29. Meanwhile, Intel (INTC - Free Report) added to the technology sector's woes.
The chipmaker's shares came under severe pressure after its fourth-quarter outlook fell short of Wall Street expectations, with the stock plunging as much as 29% on Oct. 30.
AI’s Cursed October
The AI trade has struggled in October for multiple reasons. The month saw AI-driven vulnerabilities that led to a series of high-impact cybersecurity incidents, a trend dubbed "Black October." The term refers to a series of high-impact cybersecurity incidents in October 2026 that were accelerated by AI.
Meanwhile, the AI debt boom emerged as a key concern. The 10-year Treasury yield climbed to around 5.3% at the start of the month, reviving concerns about borrowing costs and the massive debt financing used to build AI data centers.
Investors have constantly reassessed technology valuations amid rising rates and heavy corporate borrowing. Roundhill Generative AI & Technology ETF (CHAT - Free Report) is off 18% over the past month (as of Oct. 30, 2026).
Energy Stocks Offer Some Relief
Energy shares provided a rare bright spot amid the broader market weakness. ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) briefly touched record highs after both oil majors reported stronger earnings, thanks to wider refining margins amid the ongoing conflict in the Middle East.
Bitcoin Falls as Binance Hack Rattles Crypto Market
The weakness extended beyond equities, with cryptocurrencies also coming under pressure. Bitcoin has declined more than 7% over the past month. Digital assets faced selling pressure following a reported $6.3 billion hack involving cryptocurrency exchange Binance on Oct. 30. The incident was described as the largest cryptocurrency heist in history. iShares Bitcoin Trust ETF (IBIT - Free Report) is off 8.4% over the past month.
ETF Winning Areas of October
Against the somber backdrop described above, the following exchange-traded funds (ETFs) emerged as winners in October.
Breakwave Tanker Shipping ETF (BWET - Free Report) – Up 20.7%
The closure of the Strait of Hormuz, along with ongoing disruptions in the Red Sea, has disrupted key shipping routes, driving a sharp surge in freight rates. Elevated shipping rates have positioned the shipping fund BWET as a clear beneficiary.
United States Brent Oil Fund LP (BNO - Free Report) – Up 18.8%
Due to the ongoing tensions in the Middle East, Brent crude futures climbed to around $113 per barrel, while West Texas Intermediate (WTI) crude futures reached around $103 per barrel (at the time of writing).
Munificent Seven ETF BBLS – Up 14.6%
It looks to offer long-term growth of capital through exposure to the energy and infrastructure helping drive AI growth.
iShares Cybersecurity and Tech ETF (IHAK - Free Report) – Up 8.8%
Cybersecurity stocks are having a strong year, due to rising AI-related spending and growing warnings from technology leaders about the risks posed by powerful AI agents. The emergence of advanced AI models has raised concerns about increasingly sophisticated cyberattacks, making cybersecurity investments even more crucial. Note that IHAK is up about 66% this year.
WisdomTree Cloud Computing ETF (WCLD - Free Report) – Up 8.2%
The widespread adoption of remote connectivity continues to fuel the need for scalable and reliable cloud solutions. In second-quarter 2026, global cloud infrastructure service spending grew to $143.4 billion (an increase of more than $43 billion from second-quarter 2025), marking the highest growth rate in eight years, per Synergy Research. Some major cloud providers recently revealed that AI cloud capacity is sold out through next year.