FX.co ★ Dow Jones Sets Fresh Historic High

On Friday, the Dow Jones Industrial Average reached a new record high, climbing 2.5% as U.S. equities saw a broad recovery following a significant tech-driven selloff earlier in the week. This rebound was fueled by investor interest in dip buying, as concerns regarding immediate disruptions due to AI and the necessity of forced deleveraging subsided. The S&P 500 rose by 1.9%, and the Nasdaq saw a 2.1% increase, largely driven by a robust comeback in semiconductor stocks. Notably, Nvidia, Broadcom, and AMD each surged more than 7%, as investors selectively re-entered positions after notable declines. Cyclical stocks outperformed, with Caterpillar and Goldman Sachs rising by 7.1% and 4.3%, respectively, signaling a shift towards value-oriented and economically sensitive sectors. Despite the strong performance on Friday, the Nasdaq concluded the week with a 1.9% loss, indicating continued caution around high valuations, substantial AI capital expenditures, and the risk of executing on earnings forecasts. Amazon saw a further decline of 5.6% after reaffirming its commitment to $200 billion in AI investment. Overall, the S&P 500 ended the week slightly down by 0.1%, while the Dow posted a gain of 2.6%.