Fund investors in October felt the downdraft in artificial-intelligence shares, even as broader stock funds have held on to a 9.9% gain for 2026 so far.
The pullback came as a sell-off in AI-related stocks rattled sentiment across the technology sector. Investors who had piled into high-growth names saw their holdings fall sharply during the month, underscoring how concentrated bets on artificial intelligence can swing portfolio performance.
Despite the turbulence, the wider stock market has continued to deliver solid returns for fund holders this year. The 9.9% year-to-date gain reflects resilience across diversified funds, many of which held positions outside the most volatile technology names.
The Wall Street Journal's markets coverage also looked back at a historical episode, recalling the Boesky insider-trading bombshell of four decades ago. That scandal, which rocked Wall Street in the 1980s, remains a reference point for regulators and investors weighing the risks of market misconduct and the importance of transparency.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing