Key insights
- Investors are rotating out of technology stocks, citing concerns about AI financing and competition, and moving into consumer and healthcare stocks. Nike, Sherwin-Williams, Home Depot, Walmart, McDonald's, UnitedHealth Group, and Amgen saw gains. This shift provides a lift to
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Some beaten-down consumer names are getting a boost as investors pull back from tech stocks.
Shares of sportswear giant Nike (NKE), which entered the day down 45% for the year, jumped 5% Thursday afternoon to lead gains on the Dow Jones Industrial Average.
Paint maker Sherwin-Williams (SHW), home improvement retailer Home Depot (HD), Walmart (WMT), and McDonald’s (MCD), also climbed, helping lift the index 1%, while AI darlings Nvidia (NVDA) and Amazon (AMZN) declined.
Concerns about AI financing and competition have some investors rotating into more defensive consumer-centric stocks, many of which have taken a hit in recent months amid worries about stubborn inflation and declining consumer confidence as the war in Iran drags on.
The healthcare sector is also getting a lift, with shares of UnitedHealth Group (UNH) and Amgen (AMGN) each up around 3%. (For more reporting on Thursday’s market moves, click here.)