S&P 500 Ex-AI Index Matches Benchmark Performance Amid Tech Sector Rotation
A proprietary Goldman Sachs index that excludes 'AI enablers' has briefly outperformed the standard S&P 500, currently tracking at a 12.4% return compared to the benchmark's 12%. This shift follows a significant selloff in AI-linked stocks and heavy capital expenditure announcements from major tech players like Meta Platforms. Investors are increasingly rotating out of high-growth technology sectors into defensive areas such as consumer staples, healthcare, and utilities. Analysts suggest that while AI drove market gains for much of the year, the current momentum has shifted toward non-tech 'compounders' and diversified holdings like Berkshire Hathaway to mitigate volatility in the tech sector.
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Topics: AI stocks Goldman Sachs index S&P 500 Sector rotation Tech selloff