Wall Street moved in two directions on 12th Nov as the Dow soared, climbing 559 points (up 1.18%) and closing at an all-time high of 47,927.96. Investors rushed into blue-chip names—Merck, Amgen, Johnson & Johnson—giving the index a strong push. The S&P 500 rose too, though not as dramatically, ending up 0.21% at 6,846.61. Tech stocks, though, didn’t join the party. The Nasdaq Composite dropped 0.25% to 23,468.30 as investors pulled back from the sector.
Tech Stocks Stumble as AI Fever Cools
Big tech had a rough day. Worries over sky-high valuations sent shares tumbling. CoreWeave—a big name in AI cloud infrastructure—plunged more than 16% after issuing weak guidance. Nvidia lost around 3% after SoftBank cashed out its entire $5 billion stake. Other AI favorites like Micron Technology, Oracle, and Palantir Technologies fell too, pulling the Technology Select Sector SPDR Fund (XLK) down by about 1%. Portfolio manager Bill Fitzpatrick summed it up: tech companies generate plenty of cash, but when prices get too lofty, bad news stings more. Investors are moving toward value and defensive stocks instead.
Shutdown Bill Lifts Hopes, Jitters Remain
The atmosphere brightened after the Senate passed a bill to end the US government shutdown, sending it to the House and raising hopes for a quick resolution. But not everything’s back to normal. Economic data is all over the place—ADP’s latest numbers show private sector jobs dropping by more than 11,000 a week in the four weeks leading up to October 25. The labor market looks shaky. Fitzpatrick pointed out that deep political divisions are keeping investors focused on quality trades. That’s helped the Dow, but it’s put even more pressure on the tech-heavy Nasdaq.
