SynopsisAfter a rocky start, the S&P 500 experienced a resurgence, largely spurred by investments in the healthcare and consumer segments. Investors seemed to distance themselves from technology stocks, anxious about mounting debts in the AI sector.

Eli Lilly and UnitedHealth rose thanks to favorable evaluations from Deutsche Bank, whereas Broadcom and Nvidia struggled. Listen to this article in summarized formatReuters The market sentiment remains mixed as these factors play out.

The Dow, S&P 500 ended higher on Thursday, springing back from early losses as investors concerned about AI stocks shifted into Eli Lilly, UnitedHealth and other healthcare and consumer stocks. Several technology stocks fell, as investors scrutinized AI-related companies whose debt loads leave them vulnerable to rising interest rates.

Eli Lilly, UnitedHealth and Walmart rallied after rating upgrades by Deutsche Bank. Broadcom and Nvidia dipped after chip manufacturer TSMC struck a cautious note on 2027 despite reporting a sixth consecutive record quarterly profit ‌on robust AI-driven demand.

Dell Technologies and Hewlett Packard Enterprise added to sharp losses in the prior session related to worries about AI companies exposed to higher borrowing costs. The yield on 10-year Treasuries retreated but remained near multiyear highs as investors worry about inflation related to high oil prices."

The cost to finance everything, whether it be a new single-family house or a giant data center, is going up, and that has implications for lots of stuff in the stock market," said Jed Ellerbroek, portfolio manager at Argent Capital Management in St. Louis.

" The best performing stocks today are the non-cyclical, defensive businesses." The Philadelphia semiconductor index fell for the seventh straight session.

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After hitting a record high last week, the S&P 500 remains up about 13% in 2026, with most of that gain fueled by AI-related stocks. The S&P 500 is trading at about 19 times expected earnings, around its lowest level since 2023.

The index's relatively low price-to-earnings valuation suggests investors are pricing in an eventual end to the massive earnings growth fueled by AI heavyweights, Ellerbroek said. Data on Thursday showed US producer prices increased by the most in 4-1/2 years in September amid rising goods and services costs, the latest indication of inflation broadening beyond energy products.