US sharemarkets finished Monday modestly lower, with continued pressure on key artificial intelligence stocks offsetting early gains. The S&P 500 slipped 0.16% after starting the session in positive territory. The Dow Jones Industrial Average fell 41 points, while the Nasdaq Composite declined 0.6%.
The weakness was concentrated in technology and AI-linked names. Broadcom fell more than 5% and Oracle dropped over 2%, extending last week’s sharp pullback in stocks that had previously led the AI-driven rally. Microsoft also posted losses, adding to the drag on the broader market.
The move followed a weak finish to last week for the S&P 500 and the Nasdaq, while the Dow, which has less exposure to technology and AI, recorded a stronger weekly performance. Over that period, Oracle plunged 12.7%, Broadcom fell more than 7%, and the S&P 500 technology sector declined 2.3%.
Rotation into cyclicals and healthcare
As investors reduced exposure to AI and large-cap tech, money rotated into more economically sensitive sectors. Consumer discretionary and industrial stocks attracted buying interest, alongside a lift in healthcare shares.
The shift highlights an ongoing reassessment of positioning after the outsized gains seen in parts of the technology sector earlier in the year. Despite the recent pullback, broader market conditions remained relatively stable, with declines limited and no sign of widespread selling pressure.
Market participants continue to view short-term weakness as part of a normal consolidation phase rather than a decisive change in trend, particularly given expectations of earnings growth into next year.
Local market
Australian shares are expected to open flat, with S&P/ASX 200 futures pointing down one point, or 0.01%, to 8,637.
Locally, Westpac will release its monthly consumer confidence report at 10.30am, while Reserve Bank assistant governor Brad Jones is scheduled to speak at the AusPayNet Summit in Sydney at 9.15am. Orica is set to hold its annual meeting today.
Offshore, investors will also monitor a range of manufacturing and services PMI readings across Japan, Europe, the UK and the US, as well as US nonfarm payrolls and unemployment data due early Wednesday AEDT.
