The Dow Jones Industrial Average climbed 450 points, or about 1%, on Thursday, reaching a fresh record as investors rotated out of high-flying AI stocks following Oracle's ORCL disappointing earnings.
The S&P 500 and Nasdaq Composite fell 0.3% and 0.9%, respectively, reflecting profit-taking in tech. Analysts said the rotation underscores caution among investors as the Fed maintains a “wait-and-see” approach on future rate moves.
Oracle shares tumbled 13% after revenue came in below analyst expectations and the company raised its AI infrastructure spending.
Investors shifted toward cyclical stocks and financials benefiting from the Federal Reserve's recent 0.25% rate cut. Visa V gained 3% after a Bank of America upgrade highlighted its strong fundamentals and long-term growth potential. Home Depot HD and other cyclical names also saw gains.
Market watchers will track Oracle's AI commitments and the broader tech sector's performance in the weeks ahead.
