Traders work on the floor of the New York Stock Exchange (NYSE) on November 12, 2025 in New York City.
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performance discrepancy Dow Jones Industrial Average and Nasdaq Composite The US side on Wednesday doubled down on the suggestion that there are two markets in the US. One is the artificial intelligence market and the other is the “everything else” market.
The Dow Jones Industrial Average not only rose, but also hit a record high for the second year in a row, closing above the $48,000 level for the first time.
The index is comprised of 30 blue-chip companies and is typically considered an indicator of the “old economy.” So before Silicon Valley became a little sun powering everything, it’s primarily made up of the large, established companies that drove the U.S. economy, including banking, health care, and industry.
And it was those stocks – goldman sachs, Eli Lilly and caterpillar — that pushed the Dow higher on Wednesday.
Certainly a new and flashy name, Nvidia and sales forcewhich also makes up the Dow. However, because this index is price-weighted, companies with higher stock prices have more influence on the Dow average, so tech companies do not have as much influence on the Dow average.
This is in contrast to the Nasdaq, which focuses on a company’s market capitalization and is dominated by technology companies. Tech-heavy indexes fell as stocks such as Oracle and Palantir fell. Even Advanced Micro Devices’ growth outlook, which received 9% support, couldn’t lift the Nasdaq out of the red.
That’s not necessarily a warning sign about AI overdevelopment.
“In our view, there’s nothing wrong with scaling back some of the stock market gains and redistributing them to other spots,” said Josh Chastant, public investment portfolio manager at Guidestone Funds.
But what investors really want is for the forks to converge. That tends to be the safer path.
What you need to know today
And finally…
People walk in front of the New York Stock Exchange (NYSE) on June 18, 2024 in New York City.
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Why private equity is plagued by “zombie companies” that can’t be sold
Private equity firms are facing a new reality. An ever-increasing number of companies remain in portfolios like dead bodies, unable to thrive or disappear.
These so-called “zombie companies” are companies that aren’t growing, can barely generate enough cash to pay off debt, and can’t attract buyers even with discounts. These are typically locked up on the fund’s balance sheet beyond the expected holding period.
— Li Yingshan
