Communication Services stocks are under severe pressure: The Communication Services ETF, XLC, underperformed the S&P 500 by -6.3 percentage points over 5 trading days ending October 27th, its largest 5-day underperformance since November 2022. This also marks its 3rd-biggest 5-day relative decline in 19 years. This comes as XLC has fallen in 8 of the last 9 sessions, losing a total of -8.3%, and is trading at its lowest level since June 2025. Communication services stocks are now heading for their 3rd consecutive weekly decline. As a result, XLC is down -11.6% year-to-date, putting it on track for its first annual drop since 2022. The Communication Services sector has become extremely oversold.