US stocks weekly: AI unwind
SPY•The S&P 500 fell 1.9% for the week and the Nasdaq Composite dropped 4.5%, while the Dow gained 0.7%. Technology fell 6.4% and semiconductors plunged more than 11% as rate-hike fears and concerns about AI spending weighed on stocks.
1. Technology slides
Technology shares fell 6.4% and the semiconductor index plunged more than 11%, extending its slide to eight sessions. Rate-hike fears stoked concerns about AI spending, while CoreWeave's $50 billion debt load added to worries about higher borrowing costs. AI infrastructure companies, including Dell and Hewlett Packard Enterprise, also slumped after a hot inflation report.
2. Defensive sectors gain
Healthcare rose 3.4% and consumer staples gained 5% as investors sought shelter from technology and debt concerns. UnitedHealth rose after raising its 2026 profit forecast. Kimberly-Clark jumped after preliminary third-quarter results topped estimates, and said it remained on track to complete its roughly $40 billion acquisition of Kenvue by year end.
3. Banks and bonds
Financials gained 1.4%, although the S&P 500 banks index slipped 0.4%; the regional banking index rose 1.3%. The 10-year Treasury yield reached about 5.33% before retreating to around 5.09%. The Dow gained 0.7%, while the S&P 500 fell 1.9% and the Nasdaq Composite lost 4.5%.
