S&P 500 Extends Decline as Investors Rotate Away From Tech

The S&P 500 fell 0.6% last week, marking its third consecutive weekly decline, after an earlier report put the drop at 0.5%. Heavy selling in AI and mega-cap growth stocks weighed on the index, while investors showed interest in small- and micro-cap shares, REITs, utilities, value stocks, oil and gas equipment, commodities and yield-focused investments. Technology, communication services, silver, blockchain and other high-beta assets lagged or faced outflows. The S&P 500 remains 3.1% below its record high, compared with 2.5% in the earlier report. Short-term momentum has turned negative, but long-term momentum remains slightly positive, with six of eight tracked indicators still positive. Market commentator Erik Conley said he remains invested and expects dip buyers to return; he sees AI stocks potentially regaining leadership as volatility fades. For crypto traders, the reports point to weaker near-term risk appetite toward high-beta and blockchain-related assets, although they do not identify a specific cryptocurrency or signal a lasting shift in market direction.