Wall Street shifts toward healthcare stocks amid artificial intelligence concerns

On the New York Stock Exchange, concerns over the vulnerability of artificial intelligence companies to borrowing costs created selling pressure on tech stocks, while investors turned to companies in the healthcare and consumer sectors, causing the stock market to close the day with gains.

Intraday Market Recovery

The New York Stock Exchange in the U.S. started Thursday with a decline, but later recovered its intraday losses and finished the session higher.

While indices posted increases by the end of the day, investors appeared to be reshaping their cross-sector portfolio allocations.

Index Closing Figures

The S&P 500 index increased by 0.33 percent to reach 7,744.06 points, and the Nasdaq index rose by 0.08 percent to 26,713.03 points.

Meanwhile, the Dow Jones index gained 1.08 percent, reaching 52,177.69 points and ranking among the top-gaining major indices of the day.

Rise in Healthcare and Consumer Sectors

Shares of pharmaceutical maker Eli Lilly rose by over 3 percent, while shares of health insurance company UnitedHealth gained 2.8 percent.

Shares of retail giant Walmart also increased in value by 1.4 percent after Deutsche Bank upgraded its investment rating.

Standout Sectoral Performances

Examined on a sectoral basis, the healthcare sector stood out in the market with a 1.84 percent increase, and the raw materials sector with a 1.71 percent increase.

Selling Pressure on Tech Stocks

The vulnerability of artificial intelligence companies to rising borrowing costs created clear pressure on technology stocks.

Nvidia shares fell by 1.8 percent, while Dell Technologies lost 6.9 percent and Hewlett Packard Enterprise lost 7.1 percent in value.

Fed Interest Rate Expectations

Expectations that the Fed could proceed with interest rate hikes in the future continued to strengthen in the markets.

According to CME FedWatch data, the probability of an interest rate hike by the December meeting rose to 67 percent.