AI Names Lift S&P 500 Even as Rate Hike Weighs on Index

While the broader S&P 500 absorbed the shock of the Fed's rate hike, optical component makers Lumentum and Coherent stood out as the day's top gainers within the index. The move reflects investors hunting further down the AI data-center supply chain for confirmation that demand hasn't stalled.

This divergence matters for S&P 500 breadth: even as rate-sensitive mega-caps face pressure from a higher cost of capital, pockets of the index tied to AI infrastructure spending are attracting selective buying.

Google's cloud-focused AI strategy, distinct from the model-performance race dominating headlines, adds another layer traders are watching for signs of where S&P 500 tech leadership goes next.