Key facts
- Investors shifted from AI stocks to healthcare and consumer sectors.
- Concerns over AI companies' debt loads amid rising interest rates impacted trading.
- The Dow Jones Industrial Average reached a record high for a third consecutive session.
- US tech stock declines spread to Asian markets, including South Korea and Japan.
The S&P 500 rose on Thursday, recovering from earlier declines as investors rotated out of AI stocks into healthcare and consumer names like Eli Lilly and UnitedHealth. Technology stocks experienced a downturn, with Nvidia, Dell Technologies, and Hewlett Packard Enterprise seeing significant drops due to concerns about AI companies' exposure to rising interest rates and debt.
On Wednesday, the S&P 500 ended a four-session winning streak, falling 0.2% to 7,723.55, while the Nasdaq Composite dropped 0.8%. The Dow Jones Industrial Average, however, reached a record for the third consecutive day, gaining 0.5% to 54,349.12.
The selloff in US tech stocks also impacted Asian markets on Thursday, with South Korea's Kospi down over 5% intraday and Japan's Nikkei 225 declining about 1%.