S&P 500 (.SPX) drops 1.9% as AI jitters exact a toll (.N)

Dow (.DJI) adds 0.7%, but tech-heavy Nasdaq Composite (.IXIC) sheds 4.5%

Dow tries to build a base, but resistance looms ahead

This as tech’s lead over banks faces another test

US 10-Year Treasury yield (US10YT=RR) spikes to as high as about 5.33%, then pulls back to end around 5.09% as investors look for shelter (US/)

With the reversal, support comes into view

Only a minority of sectors fray: Technology unravels, while defensive groups Healthcare and Consumer Staples help hold the line

Tech (.SPLRCT) plummets 6.4%. Chip stocks dive as rate-hike fears stoke AI spending concerns, and Nvidia (NVDA.O) -backed neocloud firm CoreWeave’s (CRWV.O) $50 bln debt load compounds worries over higher borrowing costs

Semiconductor index (.SOX) plunges >11%. SOX now down 8 straight days, though skid puts reversal in focus as most oversold since Apr 2025

AI infrastructure firms slump as rate hike bets rise, as red hot CPI report fuels rout, including in AI server makers Dell (DELL.N) and Hewlett Packard Enterprise (HPE.N)

Consumer Discretionary (.SPLRCD) falls 1.9%. Tesla (TSLA.O) initially climbs on Fri on Roadster refresh, touts rocket-style thrusters. Though TSLA finishes session in the red, down 7% on the week

Financials (.SPSY) up 1.4%. JPMorgan (JPM.N) eases after Q3 profit disappoints for first time in nearly three years as market volatility slowed dealmaking, bond trading activity

Goldman Sachs (GS.N) edges lower after equities business posts 72% jump in qtrly rev

Citigroup (C.N) tumbles despite 40% jump in Q3 profit, driven by stronger investment banking, services and wealth management rev

Wells Fargo (WFC.N) drops as Q3 net interest income, rev miss eclipse earnings beat

Bank of America (BAC.N) falls after $1.2 bln Treasury-related charge to settle regulatory probes into its anti-money laundering controls, misses profit estimates

Morgan Stanley (MS.N) falls even after earnings topper on equity trading strength

For the week, S&P 500 banks index (.SPXBK) edges down 0.4%, KBW regional banking index (.KRX) up 1.3%

Healthcare (.SPXHC) leaps 3.4%. Healthcare stocks rally as investors seek safety amid tech debt worries

Insurer UnitedHealth (UNH.N) rises after raising 2026 profit forecast as turnaround efforts gather pace

Consumer Staples (.SPLRCS) surges 5%. Kimberly-Clark (KMB.O) jumps after Huggies diaper maker posts preliminary Q3 results above estimates, while it’s on track to complete ~$40 bln acquisition of Tylenol maker Kenvue (KVUE.N) by year end

Walmart (WMT.O) ascends as Deutsche Bank upgrades to ‘buy’, says retail giant well positioned to capture market share in current inflationary environment

Meanwhile, AAII pessimism rises as investors turn more cautious

SPX performance YTD:

Energy 52.7%

Tech 21.6%

Healthcare 14.1%

Staples 13.6%

Materials 12.4%

SPX 11.9%

Industrials 8.1%

Real Estate 5.5%

Comm Svcs 2.7%

Financials 1.3%

Utils -1.1%

Discretionary -4.1%

(Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)