US Stocks Fall as Dow Pulls Back From Record High; Tech Sector Weighs on Markets
US stocks retreated on Thursday after the Dow Jones Industrial Average hit a record high above 48,000, as investors rotated out of technology shares amid renewed concerns over valuations and missed economic data following the government shutdown.
Traders work on the floor of the New York Stock Exchange (NYSE) on November 12, 2025, a day after the Dow Jones Industrial Average closed above 48,000 for the first time.
US markets saw a pullback on Thursday, with major indices ending lower after a strong run earlier in the week. The Dow Jones Industrial Average slipped 115 points (0.2%), retreating from its record close above 48,000 on Wednesday. The S&P 500 fell 0.6%, while the Nasdaq Composite dropped 1.1%, dragged down by weakness in big tech and communication stocks.
Despite starting the week on a strong note, the Nasdaq has now logged three consecutive losing sessions as investors continue rotating out of high-valuation AI-linked technology stocks, including Nvidia, Broadcom, and Alphabet.
Meanwhile, Disney shares fell 8% following its mixed fiscal fourth-quarter earnings, making it one of the key laggards of the session.
📉 Market Rotation and Broader Trends
The divergence between the Dow and tech-heavy Nasdaq has continued through the week. Value-oriented sectors like healthcare and industrials outperformed as investors sought stability. The Dow’s rise to a record high earlier this week marked its best weekly performance since June, signaling a potential shift toward more diversified market participation.
“We have rebounded in dramatic fashion from the April lows,” said Eric Teal, Chief Investment Officer at Comerica Wealth Management. “The market is finally broadening out beyond growth and technology, with industrials, financials, and healthcare all participating.”
🇺🇸 Government Reopens After Six-Week Shutdown
Investor sentiment improved earlier in the week after President Donald Trump signed a funding bill late Wednesday to reopen the US federal government following a six-week shutdown — the longest in US history.
However, the prolonged stoppage has left the market without critical economic data, including the October jobs report and inflation figures. White House press secretary Karoline Leavitt noted that some reports might “never be released,” and that the shutdown could trim up to 2 percentage points from Q4 GDP growth.
Economists, however, expect only minimal long-term impact.
“The gears of government should be working again soon, but uncertainty remains around the missing inflation and jobs data,” said Carol Schleif, Chief Market Strategist at BMO Private Wealth. “We may see continued market volatility as this data gap begins to close.”
💰 Fed Outlook and Rate Expectations
The blackout of economic data has complicated the Federal Reserve’s policy outlook, leaving investors uncertain about the likelihood of a December rate cut. Markets currently price in a 51% probability of a rate reduction next month, according to the CME FedWatch Tool.
Schleif added that she expects the Fed to cut rates in December, noting that lower short-term yields could continue to support small-cap and value stocks.
🚀 In Other Market News
Elon Musk’s xAI has reportedly raised $15 billion in a fresh funding round, valuing the startup at $200 billion, according to CNBC. The funds will primarily go toward acquiring graphics processing units (GPUs) essential for training large language models.
Meanwhile, Firefly Aerospace shares surged 20% premarket after the Texas-based company reported better-than-expected third-quarter results, including stronger revenue guidance for FY2025.
