Dow Rises 1% as Healthcare Leads Rotation Out of AI-Linked Tech
Updated
Updated · Reuters · Oct 20
Dow Rises 1% as Healthcare Leads Rotation Out of AI-Linked Tech
3 articles · Updated · Reuters · Oct 20
Summary
The Dow climbed 518.51 points to 52,485.50, while the S&P 500 rose 0.4% and the Nasdaq added 0.2% as investors favored value shares over megacap tech.
Healthcare jumped 2.3% to a record high, with Eli Lilly up nearly 4% and Moderna more than 5%, reflecting lingering skepticism about whether AI-heavy companies can monetize spending.
Small caps joined the shift, with the Russell 2000 up 1.7% and the S&P value index gaining 0.8%, while the growth index slipped 0.02%.
3M surged 5.9% after expanding its Amazon data-center partnership and lifting its full-year profit forecast, while GM sank more than 8% on warnings of higher commodity costs and weaker truck sales.
Investors were also positioning for earnings from SpaceX and Netflix after the bell, with Meta and Tesla due Wednesday, keeping pressure on communication-services names including Meta, Netflix and Alphabet.