Non-AI Stocks Outperform Broader Market This Week
Stocks outside the artificial intelligence sector have significantly outperformed the broader market this week, according to a CNBC analysis of FactSet data. The S&P ex-AI index gained nearly 2.4% for the week through Thursday while the S&P 500 declined by almost 1%, marking one of its largest weekly spreads in over three years. Top performers included Fair Isaac (up ~14%), Equifax, Darden Restaurants, and Brown-Forman. This trend reflects a broader shift as investors reassess their focus beyond AI-driven stocks that have dominated the market since late 2022 with ChatGPT's launch. Goldman Sachs and S&P Dow Jones Indices introduced the SPXXAI index in February to help measure or hedge against this concentrated trade, excluding companies tied to AI infrastructure like chips and cloud computing. Analysts suggest diversifying into non-tech compounders such as Eli Lilly, Tapestry, and AbbVie could be beneficial if market volatility increases or AI leadership broadens. The ex-AI index still trails the S&P 500 over the long term but is showing strong short-term momentum.
Topics: AI stocks ex-AI index S&P 500 performance stock market trends