Market Rotation Lifts the Dow to Record Highs as Tech Lags

The market opened the new week on a firm yet uneven note, with a clear rotation in leadership defining the day’s tone. The S&P 500 added 0.1%, the Nasdaq Composite slipped 0.3%, and the Dow Jones Industrial Average rose 0.7%, notching another record close and finishing above the 48,000 mark for the first time in history.

The session’s story was one of shifting focus—from overextended tech leaders toward value and blue-chip stocks. Despite weakness in several mega-cap tech names, enthusiasm in industrials, health care, and financials helped offset losses in the growth-heavy segments of the market.

Among bright spots in technology, Advanced Micro Devices (AMD) surged 9% after providing an upbeat long-term outlook at its analyst day, projecting $100 billion in data center revenue over the next three to five years and eyeing a $1 trillion AI market by 2030. The announcement powered a 1.5% rise in the PHLX Semiconductor Index, even as NVIDIA and most of its peers traded only marginally higher.

Mega-cap enthusiasm was otherwise muted. Despite reports that Anthropic plans to invest $50 billion in U.S. AI infrastructure, most of the “Magnificent Seven” ended in the red. Meta Platforms (-2.9%), Alphabet (-1.5%), Amazon (-2.0%), and Tesla (-2.1%) all retreated, weighing on the communication services and consumer discretionary sectors. The information technology sector still eked out a 0.3% gain, thanks to chip strength and mild support from Microsoft (+0.5%).

Energy lagged sharply as crude oil slid 4.1% to $58.50 per barrel after OPEC forecasted that supply would meet demand by 2026, marking a clear end to expectations of a long-term deficit.

The health care sector (+1.4%) extended its leadership streak, up more than 4.5% for the week, supported by continued strength in Eli Lilly (+2.9%) following news it will lower GLP-1 drug prices under an agreement with the Trump administration. Managed care names also advanced, led by UnitedHealth (+3.6%).

Financials joined the rally, with JPMorgan Chase (+1.6%) and Goldman Sachs (+3.6%) gaining ahead of President Trump’s dinner meeting with top banking executives.

Market breadth remained healthy even as large-cap tech underperformed. Advancers and decliners finished roughly even, but the S&P 500 Equal Weighted Index outpaced its market-weighted counterpart, rising 0.2%, while the Vanguard Mega Cap Growth ETF slipped 0.2%.

Political developments also helped shape sentiment. Optimism grew that the government shutdown could soon end, with the House expected to vote on a funding bill later tonight. Airline stocks rebounded on that prospect, with Delta, United, and Southwest all up between 4%–5%, lifting the industrials sector into positive territory.

Fed commentary had little market impact. Atlanta Fed President Raphael Bostic reiterated that inflation remains the greater concern, while NEC Director Kevin Hassett suggested rates could move “a lot lower” in 2025.

All told, the session’s mixed finish masked an encouraging underlying trend: investors are broadening their exposure beyond the year’s dominant AI and mega-cap themes. The result—a firmer footing for the broader market as November begins, with cyclical and value sectors stepping into leadership.

Our FTinvest 11 model portfolio extended its strong November momentum today, notching a fresh all-time high as the index climbed 0.75% to close at 876.99. Unlike the broader market—which saw another session of uneven leadership and ongoing rotation—FTinvest 11 once again demonstrated steady demand across its components, with gains building throughout the session and holding firmly into the close.

Early strength set the tone, and unlike yesterday’s more selective advance, today’s move higher was supported by broader participation within the portfolio. A clear tailwind came from several of FTinvest 11’s high-conviction growth names, which continued to attract buyers. Importantly, our index maintained its intraday momentum even during stretches when the S&P 500 and Nasdaq slipped back toward their baselines, a sign that investors remain confident in FTInvest 11’s mix of growth, quality, and resilience.

With today’s new record close, FTinvest 11 is now up 20.44% year-to-date, widening its outperformance gap versus the S&P 500, which is up 16.48% over the same period. The portfolio continues to benefit from a balanced blend of stable performers that have cushioned volatility during broader market rotations. As major benchmarks grapple with shifting expectations around Fed policy and a market that is beginning to look for leadership beyond mega-caps, FTinvest 11’s ability to deliver new highs underscores its strong positioning heading into the final stretch of the year.