S&P 500 ends higher as traders shift from AI to healthcare
SPY•The S&P 500 rose 0.33% to 7,744.06 as investors moved from AI-related stocks into healthcare and consumer shares. The Nasdaq gained 0.08%, while the Dow rose 1.08%.
1. Healthcare leads gains
The S&P 500 rebounded from early losses as investors concerned about AI stocks shifted into healthcare and consumer companies. Eli Lilly gained more than 3%, UnitedHealth added 2.8%, and Walmart rose 1.4%; the three were major contributors to the index’s advance.
2. Technology shares retreat
Nvidia fell 1.8% after TSMC struck a cautious note on 2027 despite reporting a sixth straight record quarterly profit. Dell Technologies dropped 6.9% and Hewlett Packard Enterprise fell 7.1%, while the Philadelphia semiconductor index declined 0.9% for a seventh consecutive session.
3. Inflation and rates in focus
US producer prices rose by the most in 4-1/2 years in September, and traders priced in a 67% chance of a Federal Reserve rate increase by December, up from 62% the prior day. The 10-year Treasury yield retreated but remained near multiyear highs. Eight of the 11 S&P 500 sectors rose, led by healthcare, up 1.84%.
