Small-cap stocks outperformed this week as investors rotated out of the volatile AI trade and into interest-rate-sensitive sectors, helped by a retreat in Treasury yields.
The Russell 2000 gained 2 percent for the week, leading the major U.S. equity indexes. The Dow Jones Industrial Average slipped 0.41 percent to close Friday at 52,215. The S&P 500 fell 0.47 percent to 7,623, its weekly low, while the Nasdaq Composite lost 0.71 percent, ending near its weekly low at 25,955.
The move reflected a broader shift in how investors allocate assets. Concerns about heavy capital spending and rising debt among data center builders weighed on high-flying AI-related shares, while demand for haven assets such as U.S. Treasuries helped push bond yields lower. …