Markets favor economic growth sectors as tech stocks lag behind
Investors pivoted toward stocks tied to economic growth on Thursday, driving the Dow Jones Industrial Average up 1.06% to 461.88 points to close at 43,870.35.
The S&P 500 rose 0.53% to 5,948.71, while the Nasdaq Composite inched higher by 0.03% to 18,972.42. The shift came as markets responded to broader economic signals and reevaluated strategies across various sectors as noted by CNBC.
Cyclical stocks such as Goldman Sachs, Caterpillar, and Home Depot saw strong gains, benefiting from expectations of a strengthening economy. The Russell 2000 Index also rose by more than 1%.
"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."
Tech stocks presented a more mixed picture. Nvidia closed 0.5% higher after strong third-quarter results and upbeat guidance, but concerns lingered over slowing revenue growth. Other tech players faced challenges, with Amazon dropping 2.2% and Alphabet declining nearly 5% on antitrust concerns.
Meanwhile, Snowflake surged almost 33% after surpassing Wall Street expectations and raising its revenue guidance. Salesforce also gained 3.1%.
Adding to the day’s milestones, Bitcoin crossed the $99,000 mark for the first time during intraday trading amid hopes for favorable regulatory changes under a potential second Trump administration.
As investors weigh political shifts and sector performance, markets are likely to remain volatile in the coming weeks.
