S&P 500 ends higher as traders shift from AI to healthcare

On Thursday, the S&P 500 ended higher as investors moved away from artificial intelligence stocks and toward healthcare and consumer stocks. Several technology companies, including Nvidia, Dell Technologies, and Hewlett Packard Enterprise, saw declines as traders questioned their vulnerability to rising interest rates. However, Eli Lilly, UnitedHealth, and Walmart experienced gains following rating upgrades from Deutsche Bank.

The Philadelphia semiconductor index fell for the seventh consecutive day. The S&P 500 closed the session at 7,744.06 points, up 0.3 percent, while the Nasdaq gained 0.08 percent to 26,713.03 points, and the Dow Jones Industrial Average rose 1.1 percent to 52,177.69 points. Volume on US exchanges was notably high at 20.7 billion shares traded.

The S&P 500 has increased about 13 percent in 2026, primarily driven by AI-related stocks, with a relatively low price-to-earnings valuation suggesting investors are anticipating an eventual slowdown in the sector's rapid growth. Inflation concerns and expectations of further interest-rate hikes by the US Federal Reserve contributed to the market's selloff.