Dow jumps more than 500 points as investors rotate out of tech into stocks linked to broader economy: Live updates
Traders work on the floor of the New York Stock Exchange.
NYSE
The Dow Jones Industrial Average and the S&P 500 rose Thursday as investors poured into cyclical stocks poised to benefit from an accelerating economy and rotated out of technology shares such as Nvidia, which just reported quarterly earnings.
The Dow Jones Industrial Average gained 550 points, or 1.3%. The S&P added 0.7%, while the tech-heavy Nasdaq Composite edged up 0.3%.
“This is the week where everyone is rethinking the Trump trade,” said Mark Malek, chief investment officer at Siebert. “People are taking it a little more seriously. It’s not enough to just say ‘we think the sector is going to do well’ — you have to have some answers.”
Some of Thursday’s winners included bank stocks such as Goldman Sachs, industrials giant Caterpillar and retailer Home Depot. The Russell 2000 Index, viewed as a barometer for small companies and beneficiary of a possible boost to the economy from President-elect Donald Trump, added more than 1.8%.
Investors assessed results for AI chip juggernaut Nvidia, which was up 190% this year into the results. Shares seesawed even after the company reported better-than-expected third-quarter earnings and issued strong guidance. Some traders attributed the losses to slowing revenue growth from previous quarters, or concerns that the chipmaker didn’t exceed the most optimistic guidance estimate. Shares gyrated, but were last up about 1.4%.
Nvidia 1-day
“While Nvidia’s story of huge beats has underscored the dramatic rise in AI growth, investors would be prudent to consider whether Nvidia out pacing estimates to such a degree is sustainable,” said AXS Investments CEO Greg Bassuk.
He expects the ongoing “tug-of-war” between bulls and bears to fuel potential volatility in the chipmaking stock.
Some other technology stocks felt the pressure. Amazon slumped nearly 3%, while Meta Platforms slipped about 1%. Alphabet declined by 6%, falling for a second session on antitrust fears. Snowflake was one bright spot in the sector, popping nearly 30% after the company topped Wall Street’s estimates and lifted its product revenue guidance for the fiscal year. Salesforce rallied about 5%, helping to lift the Dow.
Bitcoin also hit a fresh milestone, crossing the $98,000 level for the first time late Wednesday as investors maintained their hopes that a second Donald Trump presidency will usher in supportive regulation for the industry. It was last trading around $96,566.
