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The Dow Jones Industrial Average rallied to a fresh record high on Thursday, while the NASDAQ Composite tumbled as investors appeared to rotate out of chip names in favor of non-tech stocks.
The 30-stock index made back Thursday all it had lost on Wednesday, piling on 838.49 points, or 1.7%, to 51,626.56.
The S&P 500 changed direction and hiked 9.66 points to 7,563.34.
The tech-heavy NASDAQ slipped 118.83 points to 26,732.14.
UnitedHealth led the Dow higher, rising 5.8%. JPMorgan Chase jumped 2.7% and Walmart hiked 1.4%, to add to the benchmark’s advance.
Non-tech names outside of the Dow such as Costco and Eli Lilly gained 2% and 4.5%, respectively.
The rotation was sparked by a selloff in Broadcom that led investors to pare exposure to stocks with ties to artificial intelligence. The chipmaker traded 15% lower after the it reported a fiscal second-quarter revenue miss.
Semiconductor names, which led the latest leg higher in the market’s rally to record levels, fell broadly. Arm Holdings shed 6%, and Micron Technology pulled back by 7.7%.
Prices for the 10-year Treasury gained ground, lowering yields to 4.46% from Wednesday’s 4.49%. Treasury prices and yields move in opposite directions.
Oil prices fell $2.94 to $93.08 U.S. a barrel.
Gold prices charged ahead $34.80 to $4,501.70 U.S. an ounce.
