Technology’s rebound lifted the S&P 500 on Monday even as losses spread across much of the U.S. market, showing how a narrow group of shares can steer the benchmark.
The index closed Oct. 19 at 7,690.73, up 31.29 points, or 0.41%. The Nasdaq Composite gained 1.11% to 26,430.89, while the PHLX Semiconductor Index rose 1.61% to 11,316.34.
FXStreet, citing unnamed Deutsche Bank strategists, reported that almost two-thirds of S&P 500 members fell during the session. The strategists linked the split to technology’s influence on the index, FXStreet reported. The Associated Press also reported declines among most U.S. shares outside artificial intelligence and technology.
The divergence also figured in EconoTimes’ earlier coverage of the S&P 500’s Oct. 19 gain, which reported that AI and technology shares drove the index higher as most other U.S. stocks fell.
Chip shares had entered the session after a prolonged decline. Deutsche Bank commentary quoted by FXStreet said Monday’s gain ended an eight-session losing streak for the PHLX Semiconductor Index. The Nasdaq Composite had fallen 2.1% on Friday and lost 4.5% over the previous week, AP reported. European indexes, meanwhile, fell more than 1% on Monday, according to AP.
Borrowing costs remain a concern for companies funding AI infrastructure. The U.S. Treasury’s daily par-yield data put the 10-year yield at 5.15% on Monday, up from 5.09% on Friday. AP reported that investors were weighing what higher borrowing costs could mean for AI spending.
Meta Platforms is scheduled to report quarterly results Wednesday, Oct. 21, and Lam Research is due to discuss its business that day. Those updates could provide more detail on AI-related spending.
