One signal

An S&P 500 index excluding companies classed as AI enablers briefly outperformed the benchmark this year, as investors turned cautious about the AI trade. Goldman Sachs’ measure was up 12.4% through 22 October, compared with 12% for the standard index, CNBC reports.

The gap has since narrowed, with the indexes level after a rally in Monday trading. The shift follows a sharp sell-off in technology shares: the sector was down about 7% for October, while defensive areas gained ground. It is a market snapshot, not proof that AI investment has run out of road. But it shows how quickly enthusiasm for the build-out can become a test of whether the spending pays off.

Discuss: If AI-linked shares keep lagging, is that a sensible reassessment of spending, or a short-term rotation that investors will regret?

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