Wall Street is increasingly split between AI winners and everything else, according to CNBC's Investing Club review of its 32-stock portfolio over the five weeks since Sept. 10. The Nasdaq rose 2.3% in that stretch while the Dow fell nearly 1%, and this week the divide sharpened: the Nasdaq was down more than 2.5% as of Wednesday's close while the Dow gained about 1%. A hot inflation report Thursday and renewed selling in AI stocks widened the gap further.
Cybersecurity and AI-driven names led the winners. CrowdStrike rose 19.4% as concerns about AI risks boosted demand for network protection, helped by an essay from Anthropic's CEO urging slower AI development. Meta gained 14.4% after launching its Muse personal AI agent and more advanced versions, with Wells Fargo saying the latest model reached the "AI frontier." TJX Companies rose 13% on a rebound from post-earnings weakness, supported by a Morgan Stanley survey suggesting consumers are pulling back rather than a product-mix problem.
The biggest losers were financials and transport. Bank of New York fell 15.4% and Goldman Sachs 13.8% as the Fed's September rate hike raised concerns about funding costs, loan demand, and capital markets activity. FedEx Freight dropped 12.4% as the Iran war pushed diesel prices higher, and Boeing fell 9.8% on fuel prices, aerospace worries, and a 737 Max software issue that the FAA said does not pose a flight-safety concern. CNBC notes the financials' pullback may be a buying opportunity despite sector-wide worries, and it remains optimistic on FedEx Freight's long-term prospects while looking for signs of shipping demand improvement.