Markets Split as Tech Weakens and Dow Pushes Higher
U.S. stocks diverged Wednesday, with the Dow Jones Industrial Average (DJI) rising nearly 0.7% to another record close while Big Tech stocks faltered, keeping the Nasdaq Composite (IXIC) down 0.6%. The S&P 500 (GSPC) traded flat, as investors balanced optimism over the U.S. shutdown ending against pressure in AI-heavy names.
The rotation reflected shifting risk sentiment — with industrials and energy stocks gaining ground while investors took profits in high-growth tech after several volatile sessions.
AI Stocks Face Mixed Momentum
AMD (AMD) jumped as much as 10% after CEO Lisa Su reaffirmed strong long-term guidance, calling AI infrastructure expansion “the right gamble” for global technology leaders. The company now expects revenue to grow 35% annually over the next several years as hyperscaler demand for AI chips accelerates.
But the broader AI trade wobbled. Nvidia (NVDA), Amazon (AMZN), Apple (AAPL), and Tesla (TSLA) all traded lower, giving back early gains. The pullback followed a string of heavy AI infrastructure headlines this week — from Anthropic’s $50 billion U.S. data center expansion to SoftBank’s $5.8 billion Nvidia exit — prompting renewed questions over capital sustainability across the sector.
Shutdown Vote Could End Record Stoppage
Investor focus shifted to Washington, where the House of Representatives prepared for a decisive evening vote that could bring an end to the longest government shutdown in U.S. history.
The Senate’s earlier approval of the funding measure set the stage for passage, with expectations that the president will quickly sign it once it clears the House. A resolution could reopen access to critical economic data, including inflation and jobs figures that have been frozen for over a month.
Analysts say the return of official data will be crucial for the Federal Reserve’s December rate decision, with current expectations pointing to another quarter-point rate cut.
Fed Commentary and Earnings in Focus
Several Fed officials, including Governor Stephen Miran and Christopher Waller — reportedly a frontrunner for the next Fed chair role — are set to speak Wednesday. Markets will be watching for any hints on whether policymakers are aligned on continued easing or preparing to pause cuts after December.
On the corporate front, earnings season is winding down but still delivering headlines. Cisco (CSCO) reports after the close, while crypto firm Circle (CRCL) posted a surprise profit early Wednesday amid rising stablecoin demand — though its shares slid on weaker transaction growth.
WSA Take
The market remains in a tug-of-war between AI optimism and macro uncertainty. The Dow’s steady climb suggests capital rotation toward value and industrials, while Big Tech’s volatility hints that investors are recalibrating expectations after months of outsized gains.
If the shutdown ends this week, the market could regain a more stable footing with renewed data visibility — just as the Fed enters its final policy stretch of the year.
Read our recent coverage on AMD’s AI outlook and Anthropic’s $50B expansion.
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