Healthcare Stocks Help Wall Street Bounce Back
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On 15 October, the United States stock market finished higher after a day of ups and downs. Investors moved their money out of some artificial intelligence companies and into healthcare and consumer businesses. Big companies like Eli Lilly, a pharmaceutical firm, UnitedHealth, a health insurance company, and Walmart, a large retailer, all saw their share prices rise. The Dow Jones average went up by over 550 points, or 1.08%. The S&P 500 also went up slightly, while the important technology-focused Nasdaq barely changed.
The main reason for this shift was that investors were worried about technology companies spending too much on building large computer centres for artificial intelligence. Many of these companies have taken big loans, and with interest rates staying high, people questioned whether they could pay back their debts and make good profits in the future.
Because of this, investors turned to healthcare and consumer companies, which are seen as safer investments. By the end of the day, stocks in these areas helped the US market rise, even as many technology shares went down.
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Vocabulary
6 wordspeople who put money into profitable businesses
relating to the production of medical drugs
a business that sells goods to consumers
money earned after subtracting all business costs
a person who buys goods and services
a typical value of a stock index
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