S&P 500 Ends Modestly Lower as AI Stocks Drag on Market

The S&P 500 closed slightly lower on Monday as pressure on key artificial intelligence stocks weighed on the broader market.

The benchmark index slipped 0.16% to end at 6,816.51, after opening the session in positive territory. The Dow Jones Industrial Average fell 41.49 points, or 0.09%, to 48,416.56, while the Nasdaq Composite declined 0.59% to 23,057.41.

AI-linked shares were a notable drag during the session. Broadcom and Oracle—both of which had already faced selling pressure amid last week’s rotation away from AI—dropped more than 5% and 2%, respectively. Microsoft and other large-cap technology names also posted losses.

Investors rotated toward more economically sensitive sectors, including consumer discretionary and industrials, while healthcare stocks also attracted fresh buying interest.

The moves followed a mixed performance across major indexes last week. The S&P 500 and Nasdaq finished lower, while the Dow—less exposed to technology and AI—posted solid gains. Over the same period, Oracle tumbled 12.7%, Broadcom fell more than 7%, and the S&P 500 technology sector slid 2.3%.

Looking ahead, upcoming economic data could shape market direction. November nonfarm payrolls data is scheduled for release on Tuesday, alongside October retail sales figures, both of which were delayed due to the U.S. government shutdown earlier this fall.

Economists surveyed by Dow Jones expect November payrolls to rise by 50,000, a sharp slowdown from the 119,000 jobs added in September. The November consumer price index is set to be released later in the week on Thursday.