Dow Climbs to Record High as Tech Sell-Off Weighs on Nasdaq, S&P 500

Wall Street ended the week on a mixed note as the Dow Jones Industrial Average pushed toward a fresh record, while the S&P 500 and Nasdaq slipped amid renewed weakness in technology stocks. The divergence highlights a growing rotation away from high-flying tech names into more traditional value and cyclical sectors.

The Dow rose about 0.2%, extending gains after an earlier surge of nearly 650 points. Investors piled into banks, industrials, and consumer staples, driving the blue-chip index higher. Meanwhile, the S&P 500 dipped 0.1% after briefly crossing the 6,900 mark for the first time, and the Nasdaq fell 0.3%, continuing its slide from earlier in the week.

The sell-off in tech was sparked by disappointing earnings updates from Broadcom and Oracle, which reignited concerns about AI-related overvaluations. Broadcom’s shares tumbled nearly 8% despite beating quarterly earnings expectations, as investors worried about tighter profit margins and a lack of clarity on AI-driven growth. Oracle also weighed heavily on the Nasdaq after its revenue miss and increased spending on AI infrastructure.

At the same time, cyclical stocks benefited from the Federal Reserve’s recent interest rate cut, which boosted confidence in sectors more sensitive to economic growth. Financials and industrials saw notable gains, with companies like Visa and Home Depot advancing on strong fundamentals and analyst upgrades.

The market’s split performance underscores a broader shift in investor sentiment. While tech stocks have dominated much of 2025’s rally, concerns about stretched valuations and uncertain profit trajectories are prompting traders to rebalance portfolios toward sectors with steadier earnings outlooks. Analysts suggest this rotation could continue into year-end, especially if economic data supports the Fed’s more cautious stance on future rate moves.

In summary: The Dow is riding momentum from value and cyclical stocks to fresh highs, while the Nasdaq and S&P 500 are dragged lower by renewed skepticism around tech and AI investments. This marks a pivotal moment where leadership in the market is broadening beyond megacap technology.