S&P 500 near flat as traders shift out of risky AI bets
SPY•The S&P 500 ended nearly unchanged as investors shifted from AI-related stocks into healthcare and consumer shares. The Nasdaq fell 0.43%, while the Dow rose 0.88%.
1. Stocks mixed in afternoon trading
The S&P 500 recovered from an earlier drop to close up 0.02% at 7,720.35. The Nasdaq fell 0.43% to 26,577.25, while the Dow rose 0.88% to 52,074.56. Healthcare stocks led sector gains, up 2.36%.
2. AI-linked shares retreat
Investors scrutinized technology companies exposed to higher borrowing costs. Broadcom and Nvidia each fell more than 1%, while Dell dropped over 8% and Hewlett Packard Enterprise fell 5.8%. The Philadelphia semiconductor index declined about 2.5%, its sixth straight session of losses.
3. Inflation raises rate concerns
US producer prices rose by the most in 4-1/2 years in September. Traders priced in a 67% chance of a Federal Reserve rate increase by its December policy meeting, up from 62% on Wednesday. The 10-year Treasury yield retreated but remained near multiyear highs.
