S&P 500 Rebounds 1.5% as AI Selloff Drags Stocks Lower
Updated
Updated · CNBC · Jul 2
S&P 500 Rebounds 1.5% as AI Selloff Drags Stocks Lower
3 articles · Updated · CNBC · Jul 2
Summary
U.S. stocks slipped into the close of the holiday-shortened week after early gains faded, even as the S&P 500 still posted a roughly 1.5% rebound from last week's drop.
A soft June jobs report eased near-term fears of another Federal Reserve rate hike, but that support was offset by renewed volatility in the AI trade.
Semiconductor, memory and storage names lost momentum through the session, hitting data-center-linked stocks such as Arm, Intel, GE Vernova and Eaton.
Software moved the other way, with Microsoft and Salesforce each up nearly 5% for the week, while healthcare names including Johnson & Johnson and Cardinal Health approached record closes.
The rotation underscored the recent advantage of diversified portfolios ahead of a lighter earnings week featuring Levi Strauss, PepsiCo and Delta, plus Fed minutes and fresh services data.