S&P 500 ends higher as traders shift from AI to healthcare
Several technology stocks fell, as investors scrutinised AI-related companies whose debt loads leave them vulnerable to rising interest rates.
The S&P 500 closed higher on Thursday, rebounding from early declines as traders moved investments away from AI-focused stocks toward healthcare and consumer companies. Several technology firms, including Nvidia, Tesla, and Dell Technologies, experienced declines due to concerns about the potential impact of rising interest rates on their debt obligations.
Eli Lilly, UnitedHealth, and Walmart, on the other hand, saw gains following upgrades by Deutsche Bank, contributing significantly to the index's increase. The S&P 500's valuation stands at approximately 19 times forecast earnings, marking a low point since 2023. This reduced valuation indicates that investors are beginning to factor in the potential slowdown in earnings growth driven by AI-related companies.
The 10-year Treasury yield remained near multiyear highs, reflecting investor concerns over inflation stemming from high oil prices. The broader market also showed signs of recovery, with the Nasdaq and Dow Jones Industrial Average gaining modestly.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- S&P 500 ends higher as traders shift from AI to healthcare freemalaysiatoday.com
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