Aniket PujariAs technology stocks slide, investors are turning their focus to a new group of companies — those whose businesses cannot be replicated by artificial intelligence, and are considered more resistant to disruption, news agency Bloomberg reported.
The S&P 500 Index has dropped 0.9% this week, dragged down by software companies amid rising concerns that AI will disrupt those business models. This negative investor sentiment has been intensified following the rollout of new tools by startup Anthropic.
Meanwhile, homebuilders, transportation companies and manufacturers of heavy machinery posted strong gains. Consumer staples firms, already considered safe havens during a market downturn, were up 5.2%, heading for their best week since 2022, the agency reported.
Each of those outperforming stock categories rose again on Friday as the broader market recovered some of its losses. The Dow Jones Industrial Average, dominated by manufacturers and other major firms of an older economy, outstripped the S&P 500 and the tech-heavy Nasdaq 100 Index.
World of physical goods looks more attractive for investors
This broader trend marks a shift from the idea that powered the US stock market’s rally over the past three years. Technology has driven the rally for a long period, as investors acted on the expectation that AI would transform the economy.
However, now investors fret that many tech players will be left behind in that very transformation, and the world of physical goods looks more attractive by comparison, Bloomberg said.
Homebuilders and makers of building products, for example, are seen fitting that bill. Citi analyst Anthony Pettinari noted that their core activities such as manufacturing, distribution and assembly are not the kind of thing that AI can replace.
An index of homebuilding and residential construction-related stocks has rose as much as 13% in 2026, a sharp contrast to a 0.5% gain in the benchmark S&P 500, despite what the analyst called “mediocre” earnings, the agency said.
Then there are machinery makers and transports, both heading for their best weeks since May last year. Investors had been switching between companies such as Deere & Co. and FedEx Corp. for weeks, encouraged by falling interest rates and a resilient US economy.
Most AI-resistant companies
Consumer staples and chemicals are also among AI-resistant firms, JonesTrading’s O’Rourke noted. The staples group, composed of companies such as Dollar General Corp. and Dollar Tree Inc., has fared the best among the S&P 500 sectors this week.
Chemical stocks that suffered steep losses in 2025 due to weak demand and tariffs, are now staging a comeback. Investors are betting on a recovery in businesses such as manufacturing and homebuilding — two key markets for the chemical sector — which are expected to expand in 2026.
That investor optimism has listed shares of Dow Inc., which produces chemicals for industrial, packaging and materials applications, and LyondellBasell Industries NV, which produces polymers, chemicals and fuel products.
