The Dow Jones Industrial Average closed at a record high for the week, gaining 0.6%, while the Nasdaq Composite plunged 4.6% and the S&P 500 fell 2.0%.
The stark divergence underscores a sharp rotation in US equity markets, with investors fleeing technology-heavy names amid growing skepticism about the sustainability of artificial intelligence spending and rising infrastructure costs.
The sell-off in tech was broad-based, driven by concerns that the capital intensity of AI projects is outpacing near-term revenue generation.
As infrastructure costs climb, market participants are reassessing the valuation multiples of semiconductor and software firms that have led the rally over the past year.
The Nasdaq’s steep decline reflects this repricing of growth expectations, while the Dow’s resilience highlights a flight to quality and established earnings power.
This week’s volatility follows a turbulent period for US equities.