# S&P 500 Drops 0.5% as AI Stocks Sell Off

> S&P 500 falls 0.5% last week as AI stocks become toxic while defensives gain.
- Title: S&P 500 Drops 0.5% as AI Stocks Sell Off · Seekingalpha
- Summary: S&P 500 falls 0.5% last week as AI stocks become toxic while defensives gain. The S&P 500 declined 0.5% last week due to selling in AI stocks and a shift…
- Keywords: s&p 500, ai stocks, defensive stocks, market decline, stock selling, money, business, 500, Drops, Stocks, Sell, Seekingalpha
- Source: Seekingalpha — https://seekingalpha.com/article/4957279-the-1-minute-market-report-october-24-2026
- Author: Erik Conley
- Published: 2026-10-25T00:23:59+00:00
- Read time: 1 min
- Topics: s&p 500, ai stocks, defensive stocks, market decline, stock selling, money, business
## Market Decline
The S&P 500 declined 0.5% last week with selling concentrated in large-cap growth and AI stocks.
## Sector Rotation
Rotation favored small and microcaps, value, yield, commodities, and defensives while big tech, ai, blockchain, and high-beta stocks saw outflows.
## Market Position
Despite recent volatility, the s&p 500 is only 2.5% off its all-time high with long-term momentum marginally positive.
## Key takeaway

The S&P 500 declined 0.5% last week due to selling in AI stocks and a shift toward defensive sectors.