AI stocks are increasingly moving in the opposite direction of the rest of the market: The 40-day correlation between the US Broad AI Index and the S&P 500 ex-AI Index is down to -0.60, the lowest on record. The correlation has now been negative since late-June, marking only the 2nd negative reading on record after July 2024. This also marks a sharp reversal from the +0.65 positive correlation seen in mid-May. In other words, AI stocks are increasingly diverging from the broader market, suggesting capital is rotating between AI and non-AI stocks. This comes after the US AI Index surged +160% since April 2025, significantly outperforming the S&P 500 ex-AI Index, which gained ~35%. The AI trade is becoming increasingly independent of the broader market.