The Dow Jones Industrial Average gains near 50,700 as defensive stocks rally, while tech and AI shares decline amid soft guidance and valuation concerns.
The Dow Jones Industrial Average climbed modestly near 50,700 in mid-session trading, outpacing the S&P 500 and Nasdaq, which both dipped into negative territory. The gains were driven by defensive stocks like Procter & Gamble and Home Depot, which rose over 2% and 3%, respectively, in a price-weighted index where high-priced shares exert outsized influence.
Beneath the surface, weakness persisted in high-growth sectors. Cybersecurity stocks plummeted, with Zscaler dropping more than 30% on weaker-than-expected guidance, dragging down peers like Palo Alto Networks and CrowdStrike. Micron, which surged 19% on Tuesday to surpass a $1 trillion valuation, struggled to maintain gains, reflecting cooling enthusiasm for memory-chip stocks.
Oil prices also weighed on sentiment, with WTI falling over 3% below $90 after reports suggested Strait of Hormuz traffic could normalize within a month. Brent remained above $99, though uncertainty lingered as the White House disputed the Iranian state media claims.