The S&P 500 rebounded on Thursday, recovering from early losses as investors shifted their focus from AI stocks to healthcare and consumer sectors. Eli Lilly, UnitedHealth, and Walmart led the gains, with Eli Lilly rising over 3% and UnitedHealth adding 2.8% after rating upgrades from Deutsche Bank. These three companies significantly contributed to the S&P 500’s overall gain for the session.
Meanwhile, several technology stocks declined as investors scrutinized AI-related companies with high debt loads, making them vulnerable to rising interest rates. Nvidia dipped 1.8% after TSMC reported a record quarterly profit but struck a cautious note on 2027. Dell Technologies and Hewlett Packard Enterprise saw sharp drops, falling 6.9% and 7.1% respectively, amid concerns about higher borrowing costs for AI-exposed firms.
The yield on 10-year Treasuries retreated but remained near multiyear highs, reflecting worries about inflation driven by high oil prices. Jed Ellerbroek, a portfolio manager at Argent Capital Management, noted that rising financing costs are impacting various sectors, including data centers and housing. He highlighted that defensive, non-cyclical businesses were the best performers of the day.
The S&P 500 climbed 0.33% to end at 7,744.06 points, while the Nasdaq gained 0.08% to 26,713.03 points. The Dow Jones Industrial Average rallied 1.08% to 52,177.69 points. Volume on US exchanges was heavy, with 20.7 billion shares traded, significantly higher than the previous 20-session average of 17.6 billion shares.