{"id":623899,"date":"2026-10-08T02:04:12","date_gmt":"2026-10-08T02:04:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/623899\/"},"modified":"2026-10-08T02:04:12","modified_gmt":"2026-10-08T02:04:12","slug":"as-ai-soars-other-companies-show-signs-of-struggle","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/623899\/","title":{"rendered":"As AI soars, other companies show signs of struggle"},"content":{"rendered":"

Markets giveth and markets taketh away. Wednesday was a little more on the taketh side, but Tuesday the S&P 500 hit another record high. In fact, it\u2019s had 27 of those this year<\/a>. Artificial intelligence and tech have driven that growth. But what about everything else? <\/p>\n

Let\u2019s take out Nvidia, Microsoft, Amazon, and their ilk\u2014 we know they\u2019re doing great; happy for them. How is everyone else?<\/p>\n

\u201cNot so great,\u201d according to Matt Orton, chief market strategist at Raymond James Investment Management. <\/p>\n

When the S&P 500 hit its latest record high Oct. 6, only 24 stocks hit highs for the year. Twenty-four out of 500.<\/p>\n

\u201cThere\u2019s a significant bifurcation between everything that\u2019s tech and artificial intelligence versus everything else in the market,\u201d Orton said.<\/p>\n

It wasn\u2019t this stark even a few months ago. <\/p>\n

\u201cAll the good performance was weighted to the bottom companies, not to the [Magnificent] Seven<\/a>, not to the AI names, but to these other guys who were kind of catching up,\u201d said Matthew Paniati, a senior research analyst at Capital Advisors Group.<\/p>\n

And then some things changed: Federal Reserve Chairman Kevin Warsh gave a big press conference in August<\/a> in which he strongly suggested interest rates were probably going up. Once that happened, Paniati said non-tech companies started to struggle. <\/p>\n

Interest rates, mortgage rates, bond yields, and the price of diesel all rose. For normal non-tech companies living down here on earth, these are all bad things. <\/p>\n

\u201cThey\u2019re businesses that are tied to, say, the housing market. [And] with mortgage rates at now more elevated levels, it\u2019s not surprising that we\u2019ve seen investors rotate out of that area,\u201d said David Lefkowitz, head of U.S. equities at UBS. <\/p>\n

Homebuilder Lennar is down 27% so far this year, Doordash is down 13%, and Tyson Foods is down 11%.<\/p>\n

\u201cThere are parts of the stock market that are correlated to interest rates and to oil prices, and for those businesses that are dependent on them, they\u2019re probably experiencing some challenges right now,\u201d Lefkowitz said.<\/p>\n

AI investment does not seem to care about any of that \u2014 for now.<\/p>\n

Related Topics<\/p>\n","protected":false},"excerpt":{"rendered":"Markets giveth and markets taketh away. Wednesday was a little more on the taketh side, but Tuesday the…\n","protected":false},"author":2,"featured_media":623900,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,99536,111,139,69,4247,52843,45255,145],"class_list":["post-623899","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-magnificent-seven","tag-new-zealand","tag-newzealand","tag-nz","tag-sp-500","tag-stock-index","tag-tech-stocks","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/623899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=623899"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/623899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/623900"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=623899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=623899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=623899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}