Rotation out of tech and into value was the dominant equity story of the week.
Multiple research threads flagged money moving from mega-cap AI names into healthcare, staples, energy, financials and small caps, with the equal-weighted S&P 500 outperforming the headline index. Healthcare in particular was called out as the one defensive sector with clean technicals, while published work argued small caps look oversold enough for a tactical bounce as rates ease.
The AI complex took a visible hit. Analysts tied the pullback to disappointment around Anthropic's growth, with semis — Micron, SK Hynix, Western Digital — under the most pressure. A separate note flagged Elon Musk's comments on Chinese DRAM capacity by 2028 as a longer-term overhang. Not everyone turned cautious: one view argued NVIDIA still has runway as AI use cases mature, and another credited tech with most of September's $2.5T market cap gain.
On the index itself, researchers stayed constructive into year-end, citing 25%+ earnings growth, returning buybacks, and the historical post-midterm pattern under a split Congress.