The Dow Jones Industrial Average surged to a historic milestone on Wednesday, closing above 48,000 for the first time. This marked the second consecutive record high for the 30-stock index, signaling renewed investor confidence in established “old economy” giants like Goldman Sachs, Eli Lilly, and Caterpillar.
Meanwhile, the tech-heavy Nasdaq showed a contrasting trend, dipping slightly as shares of Oracle and Palantir declined. The split performance highlights a growing divergence in the U.S. market: one fueled by artificial intelligence and cutting-edge technology, and the other driven by traditional blue-chip companies. Despite this, experts say the disparity doesn’t necessarily indicate overexuberance in AI stocks.
In other market developments, President Donald Trump signed a bill ending the historic government shutdown, which now funds federal operations through the end of January. While the pause in government activity may have delayed October jobs and inflation reports, analysts remain optimistic that the long-term impact on U.S. economic data will be minimal.
The AI sector itself is making headlines with Anthropic’s announcement to invest $50 billion in new data centers across Texas and New York, set to go live in 2026. Partnering with AI cloud platform Fluidstack, the company aims to expand U.S.-based AI infrastructure, a move likely to drive further growth in the technology market.
Finally, investors looking for alternatives are eyeing international opportunities. Portfolio managers suggest that underrated U.K. stocks could provide valuable diversification as U.S. equities show signs of overvaluation. With AI stocks surging and traditional markets holding steady, experts recommend a balanced approach to navigating this bifurcated market landscape.
source: cnbc