11.11.202521:01:19UTC+00Dow Reaches New Record Highs

The S&P 500 rose by 0.3% and the Dow Jones surged 630 points, reaching a new record high. Conversely, the Nasdaq dropped by 0.3% as investors shifted their focus from technology stocks to blue-chip and cyclical stocks, fueled by expectations that a funding deal is likely to be approved by the House this week. In the Senate, positive developments towards reopening the government boosted optimism in sectors sensitive to economic fluctuations. Health care giants such as Merck, Amgen, and Johnson & Johnson led the Dow's upward movement, with gains of 4.8%, 4.6%, and 2.9%, respectively. Additionally, optimism over the resumption of government activities potentially releasing delayed economic data and bolstering short-term growth also contributed to an overall positive sentiment. However, the Nasdaq, heavily weighted with tech stocks, faced downward pressure due to renewed concerns impacting AI-related stocks. Notably, SoftBank's decision to sell its entire $5.8 billion stake in Nvidia negatively affected the sector, resulting in a 3% decline for Nvidia, while other tech stocks like Micron, Oracle, and Palantir recorded losses ranging from 4.9% to 1.4%.