S&P 500 and Nasdaq recover as AI selloff eases; healthcare and staples gain

The S&P 500 recovered most of its early losses to trade near flat on Thursday as a selloff in AI stocks eased and investors rotated into defensive sectors, following data showing rising US producer prices in September. The Nasdaq fell 0.47% after TSMC struck a cautious note on 2027, while healthcare and consumer staples gained 2.6% and 1%, respectively. Eli Lilly rose 5.2%, UnitedHealth gained 4%, and Walmart climbed 2.3% after a Deutsche Bank upgrade. The CBOE Volatility Index hit a two-week high, and markets await Fed Chair Kevin Warsh's speech. Heavily indebted data-center operator CoreWeave lost 1.3% amid concerns about AI cash flow, while the Dow rose 0.89%.