The Dow Jones Industrial Average reached an intraday high of 52,650 while the Nasdaq slipped 0.3% as cyclical stocks outperformed tech.
The Dow Jones Industrial Average climbed to a fresh intraday record near 52,650 before paring gains to close around 52,200, up 0.7% on the session. The rally was driven by out-of-favor sectors like healthcare, financials, and industrials, with JPMorgan Chase and Caterpillar rising over 2% and 5%, respectively.
The Nasdaq Composite fell 0.3%, highlighting a rotation away from megacap technology stocks. The Dow’s price-weighted structure, which favors industrials over tech, shielded it from the downturn in AI-driven momentum stocks. Cyclical and value stocks led the gains, contrasting with recent market trends.
Memory chip demand fueled Micron’s 14% surge after a strong quarter, reflecting tight supply for high-bandwidth memory (HBM) used in AI data centers. The shift in manufacturing capacity has lifted prices for conventional chips, benefiting memory producers.