AI trade rebounds, but leadership remains narrow
SPY•The S&P 500 and Nasdaq rose early Monday as investors returned to AI-related stocks after last week’s selloff, while most S&P 500 sectors fell. Technology and consumer discretionary gained more than 1%, and utilities and real estate lost more than 1%.
1. AI stocks lead gains
The S&P 500 and Nasdaq were higher early Monday as investors returned to AI-related stocks after last week’s sharp selloff. Lower oil prices also helped sentiment ahead of a busy week of earnings reports, but most S&P 500 sectors were lower.
2. Sector performance diverges
Technology and consumer discretionary gained more than 1%, while utilities and real estate fell more than 1%. Chip stocks were among the strongest groups, and the S&P 500 Energy sector was on track for a record close. Apple was also flirting with a record finish.
3. Yields weigh on utilities
A steady U.S. 10-year Treasury yield weighed on rate-sensitive areas, with utilities down more than 12% from their February 2026 record closing high. The October NAHB Housing Market Index was 29, below the estimate of 31.
