An AI and ‘everything else’ market in play in the U.S.
Traders work at the New York Stock Exchange (NYSE) on November 12, 2025 in New York City.
Spencer Platt | Getty Images
Difference between performance Dow Jones Industrial Average And Nasdaq Composite It reinforces the suggestion Wednesday that there are two markets operating in the United States: one for artificial intelligence and the other for “everything else.”
The Dow not only rose, but also broke its second record in a row, closing above the 48,000 level for the first time.
The index, made up of 30 blue-chip companies, is often seen as an indicator of the “old economy.” So, before Silicon Valley became a mini-region, it consisted mostly of large, well-established companies that shaped the US economy, such as banks, healthcare and industry. The sun powers everything.
And it was stocks – Goldman Sachs, Eli Lilly And Caterpillar – This is what sent the Dow higher on Wednesday.
Of course, new and flashy names, Nvidia And sales forceit also makes up the Dow. But because the index is price-weighted, meaning companies with higher share prices have a bigger impact on the Dow, tech companies don’t put as much weight into the index.
This is in stark contrast to the Nasdaq, which is weighted by the market capitalization of companies and is primarily dominated by technology firms. The tech-heavy index fell as stocks like Oracle and Palantir lost value; Even a 9% increase in Advanced Micro Devices’ growth expectations couldn’t save the Nasdaq from being in the red.
This isn’t necessarily a warning sign of over-enthusiasm in AI.
“In our view, there’s nothing wrong with kind of a pullback, taking some gains and re-diversifying at other points in the equity markets,” said Josh Chastant, public investments portfolio manager at the GuideStone Fund.
But what investors really want is for the crossroads to converge. This tends to be the safer route.
What you need to know today
Dow Jones Industrial Average notch record. The 30-stock index rose 0.68 percent in the United States on Wednesday It closed above the 48,000 level for the first time. S&P 500 It was mostly flat, with the Nasdaq Composite down 0.26%. Pan-European Stoxx 600 It gained 0.71% in value.
Anthropic will spend $50 billion on US AI infrastructure Private data centers will be built first in Texas and New York and will be implemented in 2026, with more locations to follow. The facilities will be developed with Fluidstack, an artificial intelligence cloud platform.
WE October employment and inflation data may not be announced. White House press secretary Karoline Leavitt told reporters that some of the consequences of a government shutdown could permanently damage the government’s ability to collect data. But analysts think otherwise.
The US House of Representatives is moving towards a vote. On Wednesday night, the House of Representatives cleared a procedural hurdle before voting could begin on a bill to end the government shutdown. Voting is expected to take place as of the publication date.
[PRO] This US mining stock is the top player: CIO. UK fund Blue Whale Capital’s Stephen Yiu said macroeconomic concerns such as the US fiscal deficit and dollar weakness could support the stock.
And finally…
People walk past the New York Stock Exchange (NYSE) on June 18, 2024 in New York City.
Spencer Platt | Getty Images
Why is private equity stuck with ‘zombie companies’ it can’t sell?
Private equity firms face a new reality: a growing group of companies that can neither grow nor die, lingering in portfolios like immortals.
These so-called “zombie companies” refer to businesses that are not growing, barely generating enough cash to pay off debt, and unable to attract buyers even at a discount. They often remain trapped on a fund’s balance sheet beyond the expected holding period.
— Lee Ying Shan
