Dow jumps 400 points, S&P 500 closes flat to start new quarter as investors rotate out of tech
The Dow Jones Industrial Average climbed on Tuesday as investors rotated out of technology stocks to kick off the second half of 2025.
Investors were also weighing the latest developments with President Donald Trump’s giant tax and spending bill as well as comments from Federal Reserve Chair Jerome Powell.
The S&P 500 inched down 0.11% and closed at 6,198.01, while the Nasdaq Composite lost 0.82% to settle at 20,202.89. The blue-chip Dow was the outlier, gaining 400.17 points, or 0.91%, to end at 44,494.94.
Traders dropped tech giants, such as Nvidia and Microsoft, and opted to snap up shares of health-care companies instead. Amgen and UnitedHealth jumped more than 4%, while Merck and Johnson & Johnson rose more than 3% and about 2%, respectively, lifting the 30-stock Dow. It’s a turnaround from the market’s tech-driven recovery in the second quarter: The Technology Select Sector SPDR Fund jumped nearly 23% in that period but was off 0.9% to start the third quarter.
Elsewhere, electric vehicle maker Tesla fell 5% after Trump suggested in a post on Truth Social that the Department of Government Efficiency (DOGE) should look into the government subsidies that CEO Elon Musk’s companies have received.
Musk has criticized Trump’s megabill, calling it “utterly insane and destructive” over the weekend. This isn’t the first time Trump and Musk have sparred over the administration’s spending plans, as a feud broke out between the two earlier this year.
Source : CNBC
