--- title: "Alphabet fell 12.6%, but the average stock rose" url: "https://etf.net/news/alphabet-falls-but-average-stock-rises-2026-10-29" published_at: "2026-10-29T21:12:51.200Z" updated_at: "2026-10-29T21:12:51.200Z" byline: "ETF.net Research" --- # Alphabet fell 12.6%, but the average stock rose ServiceNow lost 27%, the S&P 500 fell 0.3%, and an equal-weight fund of the same stocks gained 1.2%. By ETF.net Research. Published Oct 29, 2026. Alphabet fell **12.6%** Thursday, to $283.82, and the S&P 500 fell **0.3%**, but the average stock in that index rose. Invesco S&P 500 Equal Weight ETF, RSP, which gives every company in the index the same weight, rose **1.2%**. iShares Russell 2000 ETF, IWM, a fund of smaller companies, rose 1.0%. A few very large companies fell hard after reporting. That is why the index fell while the equal-weight fund rose. The Nasdaq Composite fell 1.4%. [CNBC](https://www.cnbc.com/2026/10/28/stock-market-today-live-updates.html) said the S&P 500's decline snapped a three-day advance. The Dow Jones Industrial Average lost 133 points. Chart: **RSP** rose 1.2% as the S&P 500 slipped 0.3% ## Alphabet The business was still growing. In its [Wednesday release](https://abc.xyz/files/doc_financials/2026/q3/2026q3-alphabet-earnings-release.pdf), Alphabet said third-quarter revenue rose 25% to $127.6 billion, and Google Cloud revenue rose 103% to $30.7 billion. The shares fell on what missed. [CNBC](https://www.cnbc.com/2026/10/28/alphabet-googl-earnings-q3-2026.html) said it was the company's first miss on both earnings and revenue in nearly four years, with profit excluding some items of $2.67 a share against $3.02 expected. The $127.6 billion of revenue was short of the $128.22 billion estimate CNBC cited. CNBC said free cash flow was negative $9.07 billion, against $2.70 billion expected, and called that drop a worrying sign for spending on artificial intelligence. Alphabet still expects capital spending to increase significantly in 2027, CNBC said. Microsoft reported the same night. It beat estimates, [CNBC](https://www.cnbc.com/2026/10/28/stock-market-today-live-updates.html) said, and the stock finished down 0.2%. YieldMax GOOGL Option Income Strategy ETF, GOOY, which sells options on Alphabet for income, fell 12.2%. The difference between the two sector funds was concentration. Global X PureCap MSCI Communication Services ETF, GXPC, which weights companies by market value and does not cap any one name, fell 6.6%. State Street Communication Services Select Sector SPDR ETF, XLC, fell 1.9%. Alphabet is about 23% of XLC. Meta Platforms, about 21% of that fund, rose 2%. Chart: **Alphabet** is 55% of GXPC, 23% of XLC ## Caterpillar Caterpillar fell 9.2%. [CNBC](https://www.cnbc.com/2026/10/28/stock-market-today-live-updates.html) called it the stock's worst day since March 2020. Companywide revenue and earnings beat estimates, CNBC said, but sales in the construction business came in slightly below estimates. ## ServiceNow ServiceNow fell **27%**, to $109.67. [CNBC](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html) said it was the stock's worst day on record. The quarter was close to the forecast, and the company still slightly raised its full-year outlook for subscription revenue. Profit excluding some items was $1.00 a share, against a $1.02 forecast, and revenue of $4.11 billion was roughly in line with a $4.10 billion estimate, [CNBC](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html) said. That gap does not explain a drop this size. CNBC said the results revived fears that new artificial-intelligence tools will upend traditional software companies, and that ServiceNow's own effort will take longer to pay off. The company has a team that works inside customer firms and builds those tools for them. "It's just going to be a little bit longer of a waiting game," Tyler Radke of Citi told CNBC. He said the payoff looks like next year. Fortinet, a cybersecurity company, fell 20%. The Motley Fool reported that the drop followed a trim to its full-year forecast for service revenue. iShares Expanded Tech-Software Sector ETF, IGV, fell 3.5%. ## Eli Lilly Not every large stock fell. Eli Lilly rose 6.6% to $1,373. During the session the shares traded as high as $1,408.38, a 52-week high. Chart: **ServiceNow** fell 27%; Lilly rose 6.6% In its [Thursday release](https://www.prnewswire.com/news-releases/lilly-reports-third-quarter-2026-financial-results-raises-full-year-guidance-and-highlights-regulatory-progress-across-the-portfolio-302922907.html), Lilly said third-quarter revenue rose 39% to $24.4 billion, driven primarily by Mounjaro and Zepbound. It raised the midpoint of its 2026 revenue guidance by $5.5 billion, to $91 billion to $92 billion from $85 billion to $87 billion. State Street Health Care Select Sector SPDR ETF, XLV, rose 2.4%. ## ADT ADT rose 33% to $9.87. The home-security company agreed to be bought by Thrive Holdings for $10 a share in cash, [ADT said](https://investor.adt.com/News--Events/news/news-details/2026/ADT-to-be-Acquired-by-Thrive-Holdings-in-15-3-Billion-Transaction/default.aspx). The shares closed just under that price. ## Hyperliquid The day's sharpest fund gains came from funds that hold HYPE, the token of Hyperliquid, a crypto trading platform. Those funds own the token, not a share of a company. [Intercontinental Exchange](https://ir.theice.com/press/news-details/2026/Intercontinental-Exchange-and-TradeXYZ-to-Bring-Hyperliquid-Based-Perpetual-Markets-Onshore/default.aspx), which owns the New York Stock Exchange, said Thursday it had agreed with Trade[XYZ] to bring that firm's markets on Hyperliquid into the United States. Trade[XYZ] runs perpetual futures there, contracts that track a price and never expire. ICE is also taking a stake in Trade[XYZ]. Grayscale Hyperliquid Staking ETF, HYPG, rose 15.5%. 21Shares Hyperliquid ETF, THYP, rose 15.3%, and Bitwise Hyperliquid ETF, BHYP, rose 15.2%. Source: etf.net, https://etf.net/news/alphabet-falls-but-average-stock-rises-2026-10-29. Please cite the page URL.