"The Dow Jones Industrial Average (DJIA) quietly passed the 50,000 mark for the very first time-an occasion that warrants donning the "Dow 50,000" hat. Of course, the party was quick to end, with the Dow plunging a few hundred points in the sessions that followed. Undoubtedly, it may not take all too long before the Dow is back up above the level. But for now, it feels like markets are already in a full-blown correction."
"With investors pivoting away from the AI disruptors (think the Mag Seven stocks) and the disrupted (software companies) and towards real, cash-flow-generative assets, the Dow might just be able to move on without so much help from the S&P 500 or Nasdaq 100. Whenever the Dow is down by the slightest margin while the S&P 500 is off over 2% and the Nasdaq 100 is already halfway to a correction, odds are there's a rotation in play."
The Dow Jones Industrial Average briefly exceeded 50,000 before pulling back several hundred points, reflecting renewed market volatility and what appears to be a broader correction. Investors are shifting away from AI-focused growth names and software toward cash-flow-generative, value-oriented sectors, enabling the Dow to outperform without reliance on the S&P 500 or Nasdaq 100. Rotation shows when the Dow holds up while the S&P and Nasdaq decline. Big-tech earnings and renewed CapEx concerns have prompted the shift. Heavyweights such as Caterpillar and other overlooked industrials have bolstered Dow resilience. Restored breadth could support the bull market's durability.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]