Advertisment
The Dow Jones Industrial Average rallied while the Nasdaq Composite struggled on Tuesday, as investors moved money away from technology stocks into other parts of the market that traded at lower valuations.
The 30-stock index zoomed 559.33 points, or 1.2%, to wind up Tuesday trading at 47,927.96, as those on Wall Street bought up shares of various blue-chip names, including health care giants Merck, Amgen and Johnson & Johnson.
The S&P 500 grew 14.18 points to 6,846.61.
The NASDAQ, on the other hand, dropped 58,87 points to 23,448.30.
The AI trade has been under pressure recently amid growing valuation concerns. On Tuesday, key names in the play, such as Micron Technology, Oracle and Palantir Technologies, moved lower in sympathy with CoreWeave and Nvidia. Micron and Oracle each declined 4%, while Palantir pulled back 3%.
Reinforcing the day’s downbeat sentiment, a new report from ADP revealed that for the four weeks ending Oct. 25, private sector job creation was down more than 11,000 on average per week.
The data stands in contrast to the October gains that the firm reported last week and signals some weakness in the labor market.
The Senate on Monday evening passed a bill to end the shutdown, sending it to the House. The negotiated deal does not include Democrats’ demand that any funding bill must include an extension of Affordable Care Act subsidies, and instead calls for a vote on the tax credits in December.
Tuesday, the Treasury market was closed for Veteran’s Day.
Oil prices climbed 80 cents to $60.93 U.S. a barrel.
Gold prices regained $13.60 to $4,135.60 U.S. an ounce.
