S&P 500 and Nasdaq pare declines as AI rout eases; healthcare, staples gain
SPY•The S&P 500 recovered most of its early losses to trade up 0.05%, while the Nasdaq fell 0.47% and the Dow rose 0.89%. Healthcare gained 2.6% as September producer prices rose by the most in 4-1/2 years.
1. Indexes recover from losses
The S&P 500 recouped most of its early losses on Thursday as a selloff in AI stocks eased and investors rotated into defensive sectors. At 12:44 p.m. ET, the Dow was up 0.89%, the S&P 500 gained 0.05% and the Nasdaq was down 0.47%.
2. Tech and defensive shares
The Nasdaq had neared a one-month low after TSMC struck a cautious note on 2027. The Philadelphia semiconductor index fell 2.4%, while Nvidia lost 1.9% and AMD fell 4%. Healthcare rose 2.6% and consumer staples gained 1%; Eli Lilly added 5.2% and UnitedHealth rose 4%.
3. Inflation and rate concerns
US producer prices rose by the most in 4-1/2 years in September, adding to concerns about broadening inflation. The VIX hit a two-week high, and markets were set to scrutinize Fed Chair Kevin Warsh's speech before the International Monetary Fund Annual Meeting.
