S&P 500 ends higher as traders shift into Eli Lilly, UnitedHealth

The session's move ran against the pattern that has defined 2026. After hitting a record high the prior week, the S&P 500 remains up about 13% this year, with most of that gain fueled by AI-related stocks. Thursday's winners were healthcare and consumer names instead, and the Philadelphia semiconductor index fell 0.9%, its seventh straight decline.

Behind the rotation sits the cost of borrowing. The yield on 10-year Treasuries retreated but stayed near multiyear highs, and investors worried about inflation tied 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 macro backdrop added to the caution. US producer prices increased by the most in 4-1/2 years in September amid rising goods and services costs, an indication of inflation broadening beyond energy products. Trading was heavy, with 20.7 billion shares changing hands against an average of 17.6 billion over the previous 20 sessions. The S&P 500's roughly 19 times expected earnings valuation, around its lowest since 2023, suggests investors are pricing in an eventual end to the massive earnings growth fueled by AI heavyweights.