Dow Outperforms as Chip Selloff Pressures Nasdaq
Wall Street closed mixed today as investors rotated out of high-growth technology and into defensive blue chips. The Dow Jones Industrial Average led the market higher, the S&P 500 edged up, and the Nasdaq Composite slipped, reflecting a shift in risk appetite amid renewed pressure on semiconductor stocks.
Gains were concentrated in health care, consumer, and telecom names within the Dow. Merck, Amgen, Nike, Johnson & Johnson, McDonald’s, Walt Disney, Honeywell, Verizon, Apple, and Procter & Gamble all advanced, with several posting gains of more than 2%. The pattern underscored steady demand for large-cap, cash-generative companies as investors sought stability.
Semiconductors and growth shares lagged after headlines that SoftBank exited its Nvidia stake in favor of an OpenAI investment focus. Chipmakers retreated across the board: Nvidia, AMD, Intel, Broadcom, and Micron all fell, with Micron leading declines. Broader weakness also hit select growth and thematic names, including Lam Research, Super Micro Computer, Arm, First Solar, Cadence Design, MicroStrategy, Grayscale Bitcoin Trust, Alibaba ADR, and Nebius NV. The rotation theme dominated the session, with defensives outpacing tech as the S&P 500 finished only modestly higher.
Key Points – Dow led gains while the Nasdaq finished lower; S&P 500 ticked higher. – Rotation favored defensive and value stocks over high-growth tech. – Dow winners included Merck, Amgen, Nike, Johnson & Johnson, McDonald’s, Disney, Honeywell, Verizon, Apple, and Procter & Gamble. – Semiconductor stocks slid after headlines about SoftBank moving away from Nvidia toward OpenAI. – Notable decliners: Nvidia, AMD, Intel, Broadcom, Micron, Lam Research, Super Micro Computer, Arm, First Solar, Cadence Design, MicroStrategy, Grayscale Bitcoin Trust, Alibaba ADR, and Nebius NV.
