Based on US stock returns through the Oct 23, 2026 close. Weekly breadth counts all US stocks; "liquid names" are stocks over $5 with market cap over $100M, average volume over 1M shares and an average daily range (ATR) over 2.4%. Inferences are labelled (inference).
Market backdrop
| ETF | 1M | 3M | 6M |
|---|---|---|---|
| SPY | -0.9% | +2.8% | +6.4% |
| QQQ | -5.0% | +2.9% | +6.1% |
| IWM | -2.1% | -5.3% | -0.3% |
| SMH | -12.2% | -6.1% | +4.1% |
| IGV | +3.2% | +25.7% | +29.8% |
| XLE | +10.8% | +16.3% | +21.9% |
A calmer, two-sided week after last week's rout.
- Across 5,575 US stocks, 420 rose 10% or more this week and 560 fell 10% or more. The average stock fell -0.4%. Last week the split was 167 up versus 1,298 down.
- Reported index moves for the week: S&P 500 -0.5%, Nasdaq -0.7%, Dow +0.4%. On Friday the Dow fell 1.23% and the S&P 500 fell 0.52%, as WTI crude topped $100 a barrel on fears of a renewed US-Iran escalation (CNBC, TradingKey).
- Software beat chips by a wide margin: IGV is +3.2% over 1M and SMH is -12.2%. Energy (XLE +10.8% 1M) is still the strongest major sector ETF.
Weak groups (liquid-name averages, 1W):
- Other Precious Metals: -10.3% (1M -21.9%)
- Gold: -8.4% (1M -15.1%). GDX 1M -13.2%
- Copper: -7.9%. Electrical Equipment & Parts: -7.9% (1M -22.3%)
- Auto Parts: -6.3%. Uranium: -6.1% (1M -19.7%; URA 1M -16.5%). Renewable Utilities: -6.0%
- Restaurants: -4.9%. Last week's top consumer group gave back part of its gain.
- Semiconductors: -3.7% (1M -17.5%). Hardware, Equipment & Parts: -4.9% (1M -17.0%)
Weekly themes
1. Software and cybersecurity rebound
Breadth:
- Software - Infrastructure: 31/145 (21.4%) up >=10% in 1W, up from 4.1% last week. Liquid-name average 1W +6.6%.
- Software - Application: 48/233 (20.6%) up >=10% in 1W, up from 3.9%. Liquid-name average 1W +7.0%, 1M +10.3%.
| Ticker | 1W | 1M | 3M |
|---|---|---|---|
| ZS | +23.0% | +18.9% | +79.3% |
| KVYO | +23.6% | +31.0% | +28.7% |
| ASAN | +21.9% | +31.2% | +75.2% |
| TENB | +19.9% | +24.3% | +38.3% |
| RPD | +18.2% | +16.0% | +57.1% |
| MNDY | +17.9% | +23.9% | +37.6% |
| HUBS | +17.3% | +22.3% | +32.2% |
| OKTA | +13.8% | +3.1% | +53.8% |
| CRWD | +13.3% | -0.8% | +40.5% |
| NOW | +12.0% | +15.4% | +60.9% |
| PANW | +11.3% | -2.4% | +17.5% |
Why:
- Oct 21: NVIDIA announced an "OpenShell" reference architecture for securing enterprise AI agents at GTC Berlin, and Zscaler, CrowdStrike and Okta said they would support it. Zscaler rose 6.3% and Tenable 5.2% that afternoon. The report also described money moving out of chips and into software (Yahoo Finance/StockStory). Analysts raised Zscaler price targets after its investor day (Timothy Sykes).
- Oct 23: Evercore ISI's survey of cybersecurity resellers found security budgets strengthening into year-end, with no sign of slowing demand. Okta had the strongest pipeline. Intraday, PANW rose 6.5%, CRWD 6.7% and NET 6% (Yahoo Finance). CrowdStrike closed +8.25%, and a report tied the move to a critical PHP vulnerability found with AI's help (TradingKey).
- ServiceNow reports Q3 on Oct 28, so its +12.0% came before earnings (Yahoo Finance).
- (inference) Last week the fear was that AI would disrupt software. This week the story was AI driving security spending, so the same fear flipped. Several leaders (CRWD, PANW, OKTA) are still flat or red on 1M, which makes this a recovery of last week's drop, not yet a new leg up.
2. Staffing, IT services and consulting (earnings season)
Breadth:
- Staffing & Employment Services: 7/23 (30.4%) up >=10% in 1W, from 0% last week. Liquid-name average 1W +15.8%.
- Consulting Services: 5/21 (23.8%). Information Technology Services: 17/82 (20.7%), liquid-name average 1W +6.3%.
| Ticker | 1W | 1M | 3M |
|---|---|---|---|
| RHI | +37.7% | +28.2% | +30.0% |
| CNXC | +18.4% | +12.3% | +48.3% |
| DXC | +18.1% | +48.8% | +60.1% |
| KFRC | +14.7% | +13.9% | +6.1% |
| MAN | +14.6% | -16.6% | -7.4% |
| EFX | +13.1% | +22.6% | +5.7% |
| UPWK | +12.5% | +17.5% | +7.4% |
| EPAM | +11.5% | +27.3% | +51.6% |
| TRU | +10.0% | +20.6% | +6.5% |
| IBM | +9.2% | +11.7% | +18.4% |
| ACN | +8.6% | +40.6% | +69.7% |
Why:
- Robert Half (Oct 22 results): EPS was $0.49, against $0.47 expected. Its talent solutions unit returned to year-over-year revenue growth for the first time since 2022. The stock was reported up about 20-23% on Oct 23 (Motley Fool, PR Newswire).
- IBM (Oct 21): revenue was $17.1B (+5%) and adjusted EPS was $2.95 against $2.86 expected. IBM said it had recovered about two-thirds of the mainframe deals clients delayed earlier in the year (Stocktwits).
- Equifax (Oct 20): revenue rose 10% to $1.69B and adjusted EPS was $2.26 against about $2.20 expected. It cut full-year revenue guidance on a weaker mortgage market (Tradingpedia).
- DXC hit a 52-week high on Oct 22 (Investing.com).
- (inference) Labor-heavy service businesses had been priced as AI losers. Earnings that showed demand holding up triggered a rerating. ACN, DXC and EPAM are up 50% or more over 3M, so for IT services this week added to an existing trend rather than starting one.
3. Biotech bounce
Breadth:
- Biotechnology: 95/604 (15.7%) up >=10% in 1W, up from 2.3% last week. Liquid-name average 1W +5.4%, but 1M is still -6.0% and XBI 1M is -4.2%.
| Ticker | 1W | 1M | 3M |
|---|---|---|---|
| IRON | +31.1% | +12.1% | +0.5% |
| BHVN | +28.8% | +5.2% | -3.1% |
| GMAB | +18.4% | +25.7% | +51.7% |
| AGIO | +18.1% | +12.5% | +1.8% |
| VRDN | +17.6% | +8.3% | +16.1% |
| VSTM | +16.1% | +28.7% | +66.0% |
Why:
- No single catalyst found for the group. Company-specific news for IRON, BHVN and GMAB was not confirmed this week.
- Takeover news returned. Merck KGaA agreed to buy Silence Therapeutics (SLN) for $20 per ADS, a 130% premium to its Oct 16 close (FMP).
- Recent coverage described a steady erosion in XBI from failed trials, rising rates and midterm-election caution, along with slower M&A (BioPharma Dive).
- (inference) This looks like a broad bounce off an oversold month, helped by a deal headline. It is not a confirmed trend yet.
4. Offshore drillers and oil services
Breadth:
- Oil & Gas Drilling: 3/9 (33.3%) up >=10% in 1W, the highest share of any group with 8 or more members. Liquid-name average 1W +7.6%.
| Ticker | 1W | 1M | 3M |
|---|---|---|---|
| RIG | +14.1% | +18.0% | +19.8% |
| VAL | +14.1% | +19.0% | +22.4% |
| WFRD | +14.0% | +3.2% | -2.1% |
| NE | +8.2% | +9.1% | +10.3% |
Why:
- WTI crude topped $100 a barrel on Oct 23 on fears that the US-Iran conflict would flare up again (TradingKey).
- Transocean and Valaris agreed to an all-stock merger in February 2026 that is expected to close in the second half of 2026, so the two stocks trade together (Fintool).
- No driller-specific news was found this week. (inference) Money moved from oil producers, which led last week, to offshore drilling and services.
One-off events (not themes)
- Braze (BRZE) +56.4%: Salesforce agreed on Oct 20 to buy it for $47.50 a share in cash, about $5.66B (The Star).
- Silence Therapeutics (SLN) +126.6%: the Merck KGaA takeover above.
- Hasbro (HAS) +18.9%: Q3 revenue rose 15% to about $1.60B and Magic: The Gathering topped $600M in a quarter for the first time. Hasbro raised its full-year growth guidance to 7-9% and doubled its buyback target to $400M (FXStreet, MarketBeat).
- Myriad Genetics (MYGN) +46.2%: no catalyst confirmed.
Monthly themes
1. Healthcare IT, diagnostics and genomics (most durable)
Breadth:
- Healthcare Information Services: 7/14 liquid names (50.0%) up >=50% over 3M and 7/14 (50.0%) up >=50% over 6M. Liquid-name average 6M +65.8%.
- Diagnostics & Research: 9/17 (52.9%) up >=50% over 6M. Liquid-name average 6M +73.9%, 1W +6.5%.
| Ticker | 1M | 3M | 6M |
|---|---|---|---|
| CDNA | +12.8% | +86.3% | +226.0% |
| TXG | -14.9% | +54.6% | +224.0% |
| HNGE | +21.2% | +50.1% | +151.8% |
| TWST | -24.0% | +55.0% | +129.6% |
| ILMN | -1.6% | +38.8% | +110.7% |
| CRL | +17.3% | +52.4% | +103.4% |
| VEEV | +17.5% | +73.5% | +100.5% |
| NTRA | -1.2% | +54.2% | +98.3% |
| HTFL | +16.5% | +135.1% | +86.3% |
Why:
- Heartflow rose about 9% around Oct 20 after Piper Sandler raised its target to $64 from $45. Its Q2 revenue was up 48% (Quiver Quant).
- Charles River beat and raised guidance on Aug 5 (SentiSense). No CRL catalyst was found this week.
- No single catalyst found for the group this week.
- Resting leaders: TXG (1M -14.9%) and TWST (1M -24.0%) are still up 129-224% over 6M but have pulled back this month. They rose this week (+2.4% and +5.4%).
2. Software (durable, re-accelerating)
Breadth:
- Software - Application: 24/68 liquid names (35.3%) up >=50% over 6M, 19/68 (27.9%) over 3M, and 10/68 (14.7%) up >=25% in 1M.
- Software - Infrastructure: 19/49 (38.8%) up >=50% over 6M.
| Ticker | 1M | 3M | 6M |
|---|---|---|---|
| OKTA | +3.1% | +53.8% | +180.4% |
| NTSK | +30.7% | +110.6% | +152.1% |
| AMPL | +27.2% | +115.1% | +146.7% |
| RBRK | +13.1% | +75.8% | +146.3% |
| SNOW | -2.6% | +21.4% | +131.9% |
| CRWD | -0.8% | +40.5% | +129.9% |
| FROG | +6.8% | +25.5% | +122.4% |
| DDOG | +5.0% | +9.2% | +108.3% |
Why: see weekly theme 1. (inference) Software held its 6M gains through last week's selloff (IGV 3M +25.7%) and turned back up this week. Durable trend plus fresh weekly breadth is the strongest combination in this issue.
3. Refiners (durable, resting)
Breadth:
- Oil & Gas Refining & Marketing: 6/8 liquid names (75.0%) up >=50% over 6M. Liquid-name average 1M +10.5%, 3M +25.5%, 6M +70.2%, but 1W -3.7%.
| Ticker | 1M | 3M | 6M |
|---|---|---|---|
| MPC | +17.0% | +47.9% | +104.0% |
| DINO | +15.0% | +37.8% | +101.9% |
| DK | +11.2% | +17.7% | +87.6% |
| PBF | +5.9% | +23.6% | +87.0% |
| VLO | +9.5% | +38.6% | +77.8% |
| PSX | +10.7% | +37.0% | +73.9% |
Why:
- The diesel crack spread hit a record $102 per barrel in August, which was tied to refinery outages and Russia's export ban. Marathon's Q2 refining margin more than doubled to $36.33 per barrel (24/7 Wall St.).
- Diesel cracks usually peak from October through February (MarketGauge).
- No new refiner-specific catalyst was found this week. (inference) The red week (MPC -4.4%, PBF -9.9%) while crude rose fits margin pressure from higher input costs. It does not show a broken trend, so these are resting leaders.
4. IT services (durable)
Breadth:
- Information Technology Services: 7/27 liquid names (25.9%) up >=50% over 3M and 5/27 (18.5%) up >=25% in 1M.
- Leaders over 3M: ACN +69.7%, DXC +60.1%, CTSH +55.2%, EPAM +51.6%, CNXC +48.3%. See weekly theme 2 for this week's catalysts.
5. AI hardware and chips (formerly durable, now breaking)
- Computer Hardware: 6/16 liquid names (37.5%) still up >=50% over 6M, but the liquid-name average 1M is -20.5%.
- Semiconductors: liquid-name average 1M -17.5% and 3M -11.1%.
- Leaders are well off their highs:
| Ticker | 1M | 3M | 6M |
|---|---|---|---|
| DELL | -14.8% | +4.3% | +111.2% |
| MU | -18.8% | -4.7% | +76.7% |
| AMD | -17.9% | -1.0% | +48.6% |
| INTC | -31.7% | -5.8% | +5.4% |
| LRCX | -25.1% | -24.6% | -14.1% |
| KLAC | -22.2% | -30.8% | -24.7% |
- Hardware steadied this week (liquid-name average 1W +1.5%; HPQ +12.1%, NTAP +5.7%). Chip equipment kept falling (LRCX -12.8%, KLAC -12.1%).
- (inference) With 3M averages negative, this is a trend under repair, not a tight consolidation.
Weekly vs monthly
| Theme | Weekly | Monthly | Read |
|---|---|---|---|
| Software / cybersecurity | Hot (21% of names +10%) | Durable (35-39% +50% 6M) | Durable trend re-accelerating |
| Staffing / IT services / consulting | Hot (21-30%) | IT services durable (26% +50% 3M) | Earnings-driven; IT services extends a trend, staffing is a fresh rebound |
| Biotech | Bounce (16%) | Weak (1M -6.0%) | Oversold bounce, unconfirmed |
| Offshore drillers | Hot (33%, small group) | Modest (3M +20%) | Follows crude above $100 |
| Healthcare IT / diagnostics | Firm (20% of HC info names) | Most durable (50%+ up 50% 6M) | Durable and still rising; TXG/TWST resting |
| Refiners | Red (-3.7%) | Durable (75% +50% 6M) | Resting leaders |
| AI hardware / chips | Flat to red | Broken 1M (-17.5% / -20.5%) | Trend under repair, not a rest |
| Gold / uranium / copper | Weakest (-6% to -10%) | Red 1M | Cooling |
What changed since last week
New this week:
- Software and cybersecurity. Infrastructure breadth went from 4.1% to 21.4%, and last week the group was listed as dropped.
- Staffing. Breadth went from 0% to 30.4% on Robert Half's results.
- Biotech bounce. Breadth went from 2.3% to 15.7%.
- Offshore drillers. Breadth went from 0% to 33.3%.
- Healthcare IT appears on the weekly list (4.3% to 19.6%).
Persistent:
- IT services and consulting (2nd week). IT services breadth went from 7.3% to 20.7%. Credit bureaus EFX and TRU are up again (+13.1% / +10.0%).
- Refiners are still the durable monthly leader but red on the week.
- Genomics leaders (TXG, TWST) are still resting.
Dropped / cooling:
- Restaurants, apparel and retail. Restaurants' liquid-name average went from +6.5% last week to -4.9% this week.
- Oil producers cooled, with the E&P liquid-name average 1W +1.8% versus +5.2%. Money in energy shifted to drillers.
- Insurance brokers cooled, from 18.8% of names to 12.5%.
- Gold and precious metals weakened further (Gold 1W -8.4%, 1M -15.1%).
Sources
- CNBC — Stock market news, Oct 23, 2026
- TradingKey — US market close, Oct 23, 2026
- Yahoo Finance/StockStory — Zscaler and Tenable shares soaring
- Timothy Sykes — Zscaler price targets raised
- Yahoo Finance — Palo Alto, CrowdStrike jump on Evercore survey
- Yahoo Finance — ServiceNow earnings preview
- Motley Fool — Why Robert Half jumped more than 20%
- PR Newswire — Robert Half Q3 results
- Stocktwits — IBM tops Q3 estimates
- Tradingpedia — Equifax gains after earnings beat
- Investing.com — DXC 52-week high
- FMP — Silence Therapeutics / Merck acquisition
- BioPharma Dive — XBI and biotech deals
- Fintool — Transocean-Valaris merger
- The Star — Salesforce to acquire Braze
- FXStreet — Hasbro tops Q3 estimates
- MarketBeat — Hasbro Q3 call highlights
- Quiver Quant — Heartflow price-target hike
- SentiSense — Charles River rallies on outlook
- 24/7 Wall St. — Record diesel crack spreads
- MarketGauge — Crack spreads explainer