The S&P 500 closed modestly lower on Monday as selling pressure in prominent artificial intelligence stocks weighed on overall market performance.

The benchmark index slipped 0.16%, ending the session at 6,816.51, after trading higher earlier in the day. The Dow Jones Industrial Average declined 41.49 points, or 0.09%, to finish at 48,416.56, while the Nasdaq Composite dropped 0.59% to close at 23,057.41.

Losses in several AI-related stocks dragged on the broader market. Shares of Broadcom and Oracle, which were among the leaders of last week’s rotation away from AI, fell by more than 5% and 2%, respectively. Microsoft and other major technology names also ended the session lower.

As investors reduced exposure to AI, capital rotated into more economically sensitive sectors, including consumer discretionary and industrials, while health-care stocks also attracted renewed buying interest.

The sector shift followed a week in which the S&P 500 and Nasdaq both finished lower, while the Dow — which has less exposure to technology and AI — posted solid gains. Over the same period, Oracle tumbled 12.7%, Broadcom fell more than 7%, and the S&P 500’s technology sector declined 2.3%.

Despite the recent pullback, some market participants remain constructive on the outlook for AI-linked stocks. David Wagner, head of equities at Aptus Capital Advisors, noted that sentiment toward the AI trade has turned sharply negative but believes market leadership will remain concentrated among the largest technology companies.

Wagner added that strong operating leverage and continued revenue growth could support margin expansion for these firms, potentially driving solid returns in the year ahead. He also described recent market declines as typical and healthy, suggesting that while part of the seasonal year-end rally may have already occurred, additional upside remains possible.

Looking ahead, investors are turning their attention to key economic data releases scheduled for the week. November nonfarm payrolls and October retail sales figures are due on Tuesday, following delays caused by the U.S. government shutdown earlier in the fall.

Economists surveyed by Dow Jones expect payroll growth of around 50,000 in November, a notable slowdown from the 119,000 jobs added in September. The November consumer price index report is set to be released later in the week on Thursday.

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