US stocks weekly: AI unwind
SPY•The S&P 500 fell 1.9% for the week as technology stocks dropped 6.4% and the Nasdaq Composite slid 4.5%, while the Dow rose 0.7%. Healthcare gained 3.4% and consumer staples rose 5%.
1. Tech stocks retreat
The S&P 500 fell 1.9% for the week, while the Nasdaq Composite lost 4.5% and the Dow added 0.7%. Technology dropped 6.4%, and the semiconductor index plunged more than 11%, extending its decline to eight days. Rate-hike fears and concerns about AI spending weighed on chip and AI infrastructure stocks.
2. Defensive sectors gain
Healthcare rose 3.4% as investors sought safety, and consumer staples gained 5%. Kimberly-Clark rose after reporting preliminary third-quarter results above estimates and said it remained on track to complete its roughly $40 billion acquisition of Kenvue by year end.
3. Banks and yields
Financials gained 1.4%, though the S&P 500 banks index edged down 0.4% for the week. The 10-year Treasury yield reached about 5.33% before pulling back to around 5.09%.
