S&P 500 had its worst week since June as tech slumped, but the average stock gained

what happened

The technology sector of the S&P 500 posted its worst week in about a year and a half, sliding 6.4%, and the broader index lost almost 2%. That was its weakest weekly showing since June, according to Dow Jones Market Data.

The average stock, however, held up. Dow Jones Market Data showed 70% of index members rose over the week, and the equal-weighted version of the index extended its gains to a second straight week. Defensive and rate-sensitive sectors, including consumer staples, healthcare, materials and utilities, climbed sharply, and the 10-year Treasury yield fell to 5.097% from a recent high of 5.31% on Oct. 5.

Strategists quoted by MarketWatch described the move as a rotation out of tech into other areas of the market rather than a broad exit from stocks.

why it matters

The drop in bond yields helped stocks in rate-sensitive sectors such as financials, industrials and real estate. Tech's weakness reflects concerns about AI-related spending, including borrowing by CoreWeave.

market impact

Tech stocks: rotation out of the sector weighs on the index; financials and industrials get support from lower yields.

tags

instruments