Tech concerns drive rotation into defensive stocks, Arkea Asset Management says
SPY•Arkea Asset Management says concerns about AI monetization timelines drove a rotation into defensive stocks. Nine of 11 S&P 500 sectors rose during the week, while the Stoxx 600 gained 1.7% and the US 10-year yield fell nearly 40 basis points in October to 4.93%.
1. Investors rotate defensively
Arkea Asset Management said investors questioned artificial intelligence monetization timelines, prompting a rotation from technology into defensive stocks. Alphabet lost $400 billion in market capitalization after disappointing results, while Intel plunged 28.6%; nine of 11 S&P 500 sectors advanced during the week and the Stoxx 600 gained 1.7%. The US 10-year yield fell nearly 40 basis points in October to 4.93%, and Microsoft raised $25 billion at a lower premium, contrasting with financing concerns around neoclouds and emerging AI companies.
