Cash exiting semiconductor stocks lifts the Dow by 1.3% while tech sector hits lowest level since early May.
The Dow Jones Industrial Average climbed nearly 700 points, or 1.3%, to trade just below 52,900 on Tuesday, roughly 450 points shy of its July record. The rally contrasts with a 20% monthly drawdown in semiconductors, triggering Korea’s ninth circuit breaker of the year after an 11% overnight drop.
Nine of eleven S&P 500 sectors rose, with healthcare and financials hitting record highs. Consumer staples surged nearly 4% on strong earnings, while technology stocks fell to their lowest level since early May. The rotation reflects capital shifting from high-growth tech to defensive, old-economy stocks.
Price-weighted gains in Dow components like Sherwin-Williams and Coca-Cola amplified the index’s move. Sherwin-Williams rose 8% after beating earnings and raising guidance, while Coca-Cola gained 5% on strong revenue and profit growth.