Key Highlights

● Consumer staples were the second-best sector on Friday, October 30, 2026, behind energy.

● Investors reached for makers of snacks, soft drinks and household goods.

● Mondelez beat with adjusted EPS of $0.78.

● Coca-Cola, PepsiCo and Costco rose.

As technology stocks tumbled on Friday, October 30, 2026, investors reached for the makers of snacks, soft drinks and household goods. Consumer staples was the second-best performing sector of the day, behind only energy, according to market data.

The broader market had its worst day since June. The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average dropped 572.25 points to 51,770.31 and the Nasdaq Composite lost 747.73 points to 25,437.00. Intel (NASDAQ:INTC)'s cash-burn warning and Amazon (NASDAQ:AMZN)'s negative trailing free Cash Flow of $42.4 billion drove money out of AI and chip stocks.

Results and rotation

Mondelez (NASDAQ:MDLZ) International, the maker of Oreo cookies and Cadbury chocolate, rose after third-quarter adjusted Earnings of $0.78 a share beat the $0.71 estimate, on Revenue of $9.97 billion that was in line with forecasts. Its adjusted gross Margin expanded as cocoa costs eased, and the company reaffirmed its full-year guidance. Jefferies (NYSE:JEF) raised its price target to $73 with a Buy rating, and UBS (NYSE:UBS) raised its target to $68.

Colgate-Palmolive (NYSE:CL) gained after base earnings of $0.97 a share topped the $0.93 estimate on sales of $5.37 billion. The company raised its full-year earnings growth outlook along with its gross margin outlook. Church & Dwight (NYSE:CHD) rose after Organic Sales growth beat its own outlook and adjusted earnings reached $0.92 a share; it raised its sales outlook.

Other staples rose without fresh company news, moving with the sector in the defensive rotation. Coca-Cola (NYSE:KO), PepsiCo (NASDAQ:PEP) and Costco (NASDAQ:COST) gained early in the session. Walmart (NASDAQ:WMT) rose to around $123.80; separately, it expanded its commercial agreement with Symbotic (NASDAQ:SYM), without giving financial terms.

Staples companies sell products people buy in good times and bad, which makes their earnings less sensitive to economic swings and to the AI Investment cycle. A senior market analyst said that "strong AI Demand is no longer enough on its own," a view that helped explain the appetite for steadier businesses.

Not every staple joined

The rally was not universal. Hershey (NYSE:HSY) came under pressure after TD Cowen downgraded the shares to Hold from Buy and cut its price target to $173 from $198. Hershey had lowered its 2026 organic sales growth forecast on Thursday, October 29. Kenvue (NYSE:KVUE) slipped after reporting third-quarter sales growth and adjusted earnings of $0.29 a share, a cent above estimates; it gave no guidance because of its pending combination with Kimberly-Clark (NASDAQ:KMB).

A strong month

Friday's gains capped a strong October for the sector. Consumer staples, health care and utilities each posted strong gains for the month, according to market data, while technology and communication services were the only sectors to fall. Nine of the 11 sectors rose for the month. The Dow rose about 864 points in October while the Nasdaq Composite fell about 1,424 points.

Six of the 11 sectors rose on Friday, and the equal-weighted S&P 500 fell far less than the cap-weighted index, showing that the selling was concentrated in the largest technology companies.

What to watch

The defensive trade faces several tests. Apple (NASDAQ:AAPL) reports on Monday, November 2, and a strong showing could draw money back toward technology. The midterm elections on Tuesday, November 3, and the October jobs report on Friday, November 6, will shape the economic outlook. Staples companies will also be watched for commentary on input costs, with Mondelez's margin gains a reminder of how much cocoa and other Commodity prices can matter.