The S&P 500 minus AI is having its best month in years

What happened

The S&P 500 excluding artificial intelligence stocks is ahead of the broader index by a little over 6% so far this month, putting it on track for its strongest month relative to the benchmark since the AI trade began.

Confirmed

Global impact / market context

Money is moving toward companies outside the AI theme after two weak readings, when the ex-AI group lagged by about 5% and then roughly 6%. A broad shift in where investors put money can change which industries attract capital and which are sold.

Analyst inference

The chart tracked monthly relative performance from 2022 through October 2026. October's lead follows an earlier 2026 reading of roughly 6% below the index, the weakest on the chart, suggesting a reversal from the year's low point for non-AI stocks.

Analyst inference

What to watch

1. The measure is ahead by a little over 6% this month, after lagging by around 5% the month before October and roughly 6% in an earlier 2026 reading. Confirmed
2. Watch whether the ex-AI group holds its lead through month-end, since the article reports it is on track rather than finished, and track whether the relative gain widens or fades. Proposed
3. If non-AI companies keep outperforming, investors may redirect money away from AI-linked stocks toward other sectors, which could affect capital spending plans and share prices in those businesses. Analyst inference

Evidence

• seekingalpha.com