S & P 500 ENDS HIGHER AS TRADERS SHIFT FROM AI TO HEALTHCARE

What happened: The S&P 500 ended higher on Thursday, rebounding from early losses as investors moved out of AI stocks and into healthcare and consumer names including Eli Lilly and UnitedHealth. Key numbers: S&P 500 rose 0.33% to 7,744.06. Nasdaq gained 0.08% to 26,713.03. Dow rose 1.08% to 52,177.69. Eli Lilly up over 3%, UnitedHealth 2.8%, Walmart 1.4%. Why it matters: Traders are pricing a 67% chance of a Fed rate hike in December, up from 62%, and the S&P 500 trades near 19 times expected earnings, its lowest since 2023, as AI-linked names face pressure from borrowing costs.

The S&P 500 ended higher on Thursday, rebounding from early losses as investors moved out of AI stocks and into healthcare and consumer names including Eli Lilly and UnitedHealth.

Traders are pricing a 67% chance of a Fed rate hike in December, up from 62%, and the S&P 500 trades near 19 times expected earnings, its lowest since 2023, as AI-linked names face pressure from borrowing costs.