Wall Street Rebounds as Investors Rotate Away From AI Shares
The S&P 500 and Dow closed higher as investors favored healthcare and consumer stocks amid worries about AI companies’ debt costs.
Key takeaways
- The S&P 500 rose 0.3% and the Dow gained 1.1% on Thursday.
- Healthcare led S&P 500 sectors, rising 1.8%.
- CoreWeave bonds traded at yields as high as 16%, according to Reuters reporting.
The S&P 500 rose 0.3% on Thursday, recovering from early losses as investors shifted toward healthcare and consumer shares. The Dow gained 1.1%, while the Nasdaq added 0.08%.
Healthcare stocks led the S&P 500’s 11 sectors, rising 1.8%. Eli Lilly gained more than 3%, UnitedHealth rose 2.8%, and Walmart added 1.4% after Deutsche Bank rating upgrades.
Technology shares remained under pressure as investors weighed the financing needs of AI-related businesses. Nvidia fell 1.8% after chipmaker TSMC struck a cautious tone on 2027, despite reporting a sixth consecutive record quarterly profit.
CoreWeave was a focus in the debt concerns. Its shares fell 2% by midday after dropping as much as 10% earlier, while its bonds traded at yields as high as 16%, Reuters reported.
Server makers Dell Technologies and Hewlett Packard Enterprise fell 6.9% and 7.1%, respectively. The Philadelphia semiconductor index slipped 0.9%, marking its seventh consecutive daily decline.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
