Spencer Platt / Getty Images
A trader at the New York Stock Exchange in December.Stocks started the week lower, pulled downward by investors' worries about the health of the AI trade. Under the hood of the S&P 500, though, there was still green to be seen.
Four of the benchmark index’s 11 sectors were recently rising, with two—healthcare and consumer staples—up more than 1%.
More than 50 stocks, meanwhile, were up more than 2%, including several telecommunications shares (lifted by AT&T’s (T) encouraging earnings report) and staples names like Kraft Heinz (KHC), JM Smucker (SJM) and General Mills (GIS).
Still, concerns that China has made big inroads in the development of artificial intelligence technology, raising questions about the competitive marketplace and the value of Big Tech’s massive spending in the sector, weighed on stocks.
The S&P’s information technology sector was the index’s biggest decliner, off 5%, followed by energy; that was reflected in the morning’s drops in stocks like Constellation Energy (CEG) and Nvidia (NVDA), both of which were making double-digit percentage moves lower.
Several Big Tech companies that have been big players—and spenders—in AI are set to report quarterly results in the coming days, and today’s volatility will likely influence the questions those companies’ executives face. Apple (AAPL), Microsoft (MSFT) and Meta Platforms (META) are all due to report results this week.
CNBC’s Magnificent 7 index, of which Meta and Nvidia are members, was recently down about 3%.
Read the original article on Investopedia