A slump in technology stocks dragged the S&P 500 to its worst week since June. Most stocks in the index still advanced, as money moved into defensive and rate-sensitive sectors.
The S&P 500 lost almost 2% this week, even though the majority of its stocks advanced. Seventy percent of the index's stocks posted weekly gains while 30% fell, according to Dow Jones Market Data.
The equal-weighted version of the index therefore cemented a second-straight week in the green. The Invesco S&P 500 Equal Weight ETF rose 0.5% this week, while the S&P 500 had its biggest weekly percentage drop since June 26.
Tech sector posts biggest weekly loss since April 2025
Information technology, the index's largest sector, dropped 6.4% this week. That was its biggest weekly loss since April 2025, according to Dow Jones Market Data. Meanwhile, seven of the S&P 500's 11 sectors saw weekly gains, FactSet data showed.
Defensive areas moved sharply higher. Consumer staples surged 5% this week, and healthcare climbed 3.4%. Rate-sensitive materials and utilities also jumped sharply.
Falling Treasury yields give stocks relief
Interest rates helped. The 10-year Treasury rate fell to 5.097% on Friday, its biggest weekly pullback since February, according to Dow Jones Market Data. That is down from a recent high of 5.31% on Oct. 5.
Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors are broadening their view because of growing concerns around the AI trade. Keith Lerner, CIO at Truist Wealth, said the market is seeing a rotation from tech to everything else rather than a broad-based selloff. According to Lerner: "A rotational market is better than when money is broadly leaving the market."
Source: MarketWatch
Trading involves risk.
Risk Disclaimer
