The major U.S. equity indices finished the session mixed, reflecting a sharp divergence between traditional blue-chip strength and renewed anxiety in high-growth technology names. The Dow Jones Industrial Average and the S&P 500 both closed at fresh record highs, supported by strength in industrials, financials, and defensive sectors. In contrast, the Nasdaq Composite ended the day in negative territory as investors continued to rotate out of mega-cap tech amid growing fears of an AI-driven bubble.
Tech Sector Under Pressure as AI Concerns Re-Emerge
The primary drag on market sentiment came from Oracle, whose shares plunged 10.83% after the company reported better-than-expected EPS but missed revenue estimates. The real shock, however, was Oracle’s massive increase in capital expenditures, far above Wall Street’s expectations. This raised concerns that companies may be overspending on AI infrastructure at a pace that is not yet matched by revenue growth — a dynamic that has sparked recurring volatility in the sector.
Oracle’s sell-off spilled into the broader semiconductor space:
Nvidia: –1.53%
Micron: –1.99%
Intel: –3.11%
AMD: Flat on the day after recovering from earlier losses
These moves reinforced the theme that investors remain unsettled about the durability of AI-related earnings momentum.
Record Closes for the Dow, S&P, and Russell 2000
Despite the tech weakness, broader market strength carried major indices to impressive milestones:
Index Closing Levels
Dow Jones Industrial Average:
+646.26 points (+1.34%) to 48,704.01 — new all-time highS&P 500:
+14.32 points (+0.21%) to 6,901.00 — new all-time highNasdaq Composite:
–60.30 points (–0.25%) to 23,593.86Russell 2000 (Small Caps):
+30.997 points (+1.21%) to 2,590.60 — new all-time high
The standout was the Dow, which surged more than 600 points as investors favored value and cyclicals over high-growth tech. The Russell 2000 also continued its strong breakout, suggesting improving breadth and greater participation across the equity market.
Bottom Line
The market landscape remains highly bifurcated. Blue chips and small caps are thriving, powering major indices to historic highs, while tech megacaps and AI-exposed stocks face increased scrutiny and profit-taking. Investors appear to be rebalancing portfolios toward sectors tied to economic resilience rather than speculative growth.
