The index surged 1.7% as investors shifted from tech to cyclical stocks, marking its highest close ever.
The Dow Jones Industrial Average closed at a record 51,230.13, gaining 865 points or 1.7%, after an intraday high near 51,300. The rally followed a rotation out of semiconductor stocks into more traditional sectors like industrials and financials.
The move extended a week-long rebound from early August lows, with the index now up over 5% for the month. Analysts noted the shift reflected growing optimism about economic resilience and a potential soft landing for the U.S. economy.
Equities broadly advanced, though tech-heavy indices lagged as chip stocks retreated from recent highs.