Traders work on the floor of the New York Stock Exchange (NYSE) on October 13, 2025 in New York City.
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of Dow Jones Industrial Average Tuesday’s closing price record set a new record; Nasdaq Composite The company struggled as investors moved money away from technology stocks and into other parts of the market that traded at lower valuations.
The Dow Jones Industrial Average rose 559.33 points, or 1.18%, to close at 47,927.96 as Wall Streeters bought up shares in a variety of blue-chip stocks, including health care giants. Merck, amgen and johnson & johnson. of S&P500 It also rose 0.21% to end at 6,846.61. However, the tech-heavy Nasdaq fell 0.25% to settle at 23,468.30.
Artificial intelligence cloud infrastructure provider core weave He was one of the latecomers to the session. Shares fell more than 16% after the company’s guidance disappointed investors and hurt AI trading. Along with this, stocks of AI chip beloved companies also Nvidia SoftBank exited by about 3% after selling its entire stake in the chipmaker for more than $5 billion.
“These tech companies are cash flow machines,” Bill Fitzpatrick, portfolio manager at Logan Capital Management, said in an interview with CNBC. “They’re great companies, but the starting point is important, and given the valuations of companies today, it doesn’t take much — all it takes is a little bit of negative news — for sentiment to pick up just a little bit and get an unwind in favor of value stocks.”
AI trading has come under pressure this month amid mounting valuation concerns, a development that has pushed the Nasdaq’s month-to-date loss to about 1%. On Tuesday, notable names will be featured in the play, including: micron technology, oracleand Palantir Technologiesfell in line with CoreWeave and Nvidia. Micron fell nearly 5%, while Oracle and Palantir fell about 2% and more than 1%, respectively. of Technology Select Sector SPDR Fund (XLK)The index that tracks the S&P 500 tech sector fell about 1%.
“(The S&P 500) is well above 20x. It will be biased upwards by the[Magnificent Seven]and other technology companies,” he added, noting that there are some stocks that have been “left behind” in the bull market. “There’s so much in the way of expected capital spending over the next few years that any setbacks on that front…maybe send a message that things are getting a little ahead of their time.”
Adding to the economic weakness seen on the Nasdaq on Tuesday, a new report from ADP revealed that private sector job creation fell by an average of more than 11,000 jobs per week in the four weeks ending Oct. 25. The data contrasts with the October growth the company reported last week and suggests weakness in parts of the labor market.
Tuesday’s move came a day after major U.S. indexes rose across the board on hopes that the record U.S. government shutdown may be nearing an end. The Senate passed a bill Monday night to lift the suspension and sent it to the House. The negotiated deal does not include Democrats’ demand that the funding bill include an extension of Affordable Care Act subsidies, instead calling for a vote on tax credits in December.
“I think there has to be a price to pay for political dysfunction, not just in the United States but around the world,” Fitzpatrick said. “Yes, we are going to get a solution, but polarization is still very prevalent and this is one of the many factors that I think should drive investors towards higher quality deals.”
