The sector rotation on Wall Street went into full swing on Tuesday, with investors flocking to previously overlooked corners of the market amid an AI-driven shift that now favors undervalued small caps and defensive names like healthcare.
• XLV stock is at critical resistance. View the market position here.
The Russell 2000 rose 2% on Tuesday, extending its rally over the past three sessions to 7%, marking its best three-day performance since November 2024. The move signals growing interest in cyclical and underpriced plays, with traders betting that artificial intelligence will unlock productivity gains across a wider range of sectors.
Healthcare emerged as the highlight of the session, with the Healthcare Select Sector SPDR Fund (NYSE:XLV) up 2.2% on the day and 10% month-on-month – the strongest monthly gain since April 2020.
Meanwhile, high-flying chip stocks continued to cool. NVIDIA Corp. (NASDAQ:NVDA) fell almost 4% after reports of this Metaplatforms Inc. (NASDAQ:META) is considering a billion-dollar investment Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) custom AI chips. The move raises concerns about a possible erosion of Nvidia’s dominance in the generative AI supply chain.
Nvidia is now down 14% in November, on track for its worst monthly performance since late 2022.
Advanced Micro Devices Inc. (NASDAQ:AMD) fell 7% on Tuesday, deepening the November decline to 20%. The stock also posted its worst monthly decline since September 2022.
While chipmakers struggled, some tech heavyweights continued to attract buyers. Alphabet hit a record above $320 per share and is now rising for the sixth month in a row as investor optimism grows about Google’s competitiveness in AI.
Apple Inc. (NASDAQ:AAPL) Shares also hit new all-time highs near $280, supported by the CEO Tim Cook‘s commitment to boost investment in China.
Within the profit movers Zoom Video Communications Inc. (NASDAQ:ZM) rose past 13% after posting stronger-than-expected quarterly results, looking at its best daily performance since November 2022. Burlington Stores Inc. (NYSE:BURL) fell 10% after issuing a weaker-than-expected fourth-quarter forecast.
In raw materials, gold rose 0.5% to $4,150 an ounce oil fell 1.5% to $57 per barrel. The drop in oil prices followed reports that Ukraine had accepted a US peace proposal. However, the Ukrainian president Volodymyr Zelensky that further negotiations are still necessary.
Bitcoin (CRYPTO: BTC) remained largely unchanged around $87,000. The world’s largest cryptocurrency has fallen 20% in the past month and is on track for its worst monthly performance since June 2022.
Tuesday’s performance in the major US indices and ETFs
| Important indexes | Price | 1 day chg. % |
| Russell 2000 | 2,460.96 | 2% |
| Dow Jones | 47,027.76 | 1.2% |
| S&P500 | 6,755.55 | 0.8% |
| Nasdaq100 | 24,973.18 | 0.4% |
According to Benzinga Pro facts:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.7% to $619.23.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.2% to $469.94.
- The tech heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rose 0.4% to $607.16.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 1.9% to $244.45.
- The Healthcare Select Sector SPDR Fund did better, up 2.2%; the Energy Select Sector SPDR fund (NYSE:XLE) lagged behind with a decline of 0.8%.
Russell 1000’s top 5 winners on Tuesday
| Stock name | % Change |
|---|---|
| Amentum Holdings, Inc. (NYSE:AMTM) | 20.61% |
| Inspire Medical Systems, Inc. (NASDAQ:INSP) | 15.32% |
| Zoom Communications Inc. | 14.20% |
| Woodward, Inc. (NASDAQ:WWD) | 12.05% |
| The Gap, Inc. (NYSE:GAP) | 10.44% |
Russell 1000’s top 5 losers on Tuesday
| Stock name | % Change |
|---|---|
| Burlington Stores, Inc. | -10.20% |
| Advanced Microdevices, Inc. | -6.42% |
| Circle Internet Group, Inc. (NYSE:CRCL) | -4.82% |
| Lumentum Holdings Inc. (NASDAQ: LITE) | -4.26% |
| Texas Pacific Land Corp (NYSE:TPL) | -4.24% |
Read now:
Photo: Shutterstock
#Small #Caps #Pharma #Surge #Nvidia #AMD #Tumble #SPDR #Select #Sector #Fund #Healthcare #ARCAXLV