S&P 500 ends higher as traders shift from AI to healthcare
SPY•The S&P 500 gained 0.32% to 7,744.07 on Thursday, recovering from early losses as investors moved into healthcare and consumer stocks. The Nasdaq rose 0.07%, while the Dow gained 1.08%.
1. Defensive stocks lead
The S&P 500 ended higher after investors shifted from AI-related stocks into Eli Lilly, UnitedHealth and other healthcare and consumer companies. Eli Lilly, UnitedHealth and Walmart rallied after rating upgrades, while Broadcom and Nvidia dipped after TSMC struck a cautious note on 2027 despite posting a sixth consecutive record quarterly profit.
2. Rates and inflation concerns
Investors scrutinized technology companies with debt loads that could leave them vulnerable to higher borrowing costs. The 10-year Treasury yield retreated but remained near multiyear highs, and September producer prices rose by the most in 4-1/2 years. Traders priced in a 67% chance of a Federal Reserve rate hike by December, up from 62% on Wednesday.
3. Market performance
The Nasdaq Composite rose 18.37 points to 26,711.24, and the Dow Jones Industrial Average climbed 559.45 points to 52,180.93. The Philadelphia semiconductor index fell for a seventh straight session. Rocket Lab shares dropped after the company delayed its Neutron rocket's inaugural launch until next year, while FMC cut its third-quarter outlook.
