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Sector ETFs Split in Midterms Week as Staples Lead

BY | ETF Database
11:30 am ET 11/06/26 | 24 VIEWS
Consumer staples stocks rose in the week of the midterms, while technology shares and the broader market fell.Key Takeaways: Household and food stocks such as Clorox and Hershey lifted consumer staples to the top sector spot. Chipmakers Lumentum and Intel each lost more than 43% as the technology sector fell nearly 14%. Energy’s two biggest holdings, Exxon and Chevron, make up 43.2% of XLE and both fell more than 8%. The State Street Consumer Staples Select Sector SPDR ETF (XLP A) gained 3.5% from October 29 to November 5, according to State Street’s sector tracker. That was the best showing among the 11 sector funds the tracker follows. Technology, meanwhile, landed at the other end, with the State Street Technology Select Sector SPDR ETF (XLK A) losing nearly 14%, per the tracker. That was nearly triple the 4.7% decline in the State Street SPDR Portfolio S&P 500 ETF (SPYM). The divide arrived alongside a November 4 State Street report on what the midterms mean for investors. Matthew J. Bartolini, the firm’s global head of research, argued that the vote may have changed Washington but not the tariffs, geopolitics, and deficits moving markets. Democratic control of Congress may shift the legislative agenda, the report said. However, many policy levers behind market volatility, including trade, remain with the executive branch, so policy-driven swings may persist. Inside XLP, household, food and beverage names led the way. The Clorox Company (CLX) jumped 12.4%, State Street’s data showed. Constellation Brands, Inc. (STZ) and The Hershey Company (HSY) each climbed more than 10%. The fund’s two largest positions also rose, according to the tracker. Walmart Inc. (WMT) gained 5.3%, and Costco Wholesale Corp. (COST) added about 7%. The State Street Communication Services Select Sector SPDR ETF (XLC A) ranked second of 11 sector funds with a 3.1% gain. Its biggest holding, Meta Platforms, Inc. (META), slipped 3.1%, but AppLovin Corp. (APP) surged 39.7%, according to State Street. Bartolini noted that U.S. large- and small-cap stocks have historically posted positive returns after midterms as the political overhang clears. Still, he expects the Federal Reserve, not Congress, to keep driving interest rates.Chip Stocks Lead Midterms Week LossesSemiconductor and hardware names posted the deepest losses inside XLK. Lumentum Holdings Inc. (LITE) fell 44.6% and Intel Corp. (NTC) lost 43.3%, the tracker shows. Not every tech stock fell, though. Tyler Technologies, Inc. (TYL) gained 15.1%, while Microsoft Corp. (MSFT), at a 13.37% weight, edged up 1.1%, State Street’s data showed. The State Street Energy Select Sector SPDR ETF (XLE A) trailed only tech, declining 10.3%, per State Street. Its two heaviest holdings, ExxonMobil Holdings Corp. (XOM) and Chevron Corp. (CVX), fell 9.8% and just over 8%, respectively. Together, those two companies make up 43.2% of XLE. Texas Pacific Land Corp. (TPL), at less than 1% of the fund, posted the fund’s steepest drop at about 17%, the tracker showed. For more news, information, and analysis, visit our Sector Investing Content Hub.

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