As AI-related stocks dive, the market’s winners have one thing in common Technology and AI infrastructure stocks experienced a sharp sell-off, causing the Nasdaq to drop significantly and potentially ending the S&P 500’s nine-week win streak. The market’s current outperformers are in sectors least connected to the broader economy, a trend potentially driven by expectations of interest rate hikes following a strong jobs report. Key events next week include Honeywell’s guidance update, Apple’s Worldwide Developers Conference, SpaceX’s IPO, and significant inflation data releases.

• Technology and AI infrastructure stocks sold off sharply, impacting the Nasdaq.
• The S&P 500’s 9-week win streak is likely ending due to weakness in tech.
• Market winners are in sectors least tied to the broader economy, such as staples, health care, real estate, and utilities.
• Increased interest rate hike expectations, following a strong jobs report, may be driving a rotation into defensive stocks.
• Upcoming events include Honeywell’s guidance update, Apple’s Worldwide Developers Conference, SpaceX’s IPO, and key inflation reports (CPI and PPI).
• JM Smucker, Casey’s General Stores, Chewy, Oracle, Adobe, and Lennar are scheduled to report earnings.