Dow Rallies as Funds Rotate Out of Tech
SingTao · 6 SOURCES1 day ago2 MIN
Summary
US stocks closed mixed on Tuesday, with the Dow outperforming as investors shifted money away from richly valued technology names and into traditional sectors. Softer US housing data and lower Treasury yields also shaped trading, while concerns about artificial-intelligence spending and valuations remained in focus. In Hong Kong, the Hang Seng Index rebounded at Wednesday's open after the Wall Street move, with major technology shares mostly firmer and Lenovo among the early gainers.
Key Points
- The Dow Jones Industrial Average closed up 531.39 points, or 1.02 percent, at 52,497.42, while the S&P 500 rose 21.9 points and the Nasdaq fell 6.07 points.
- Sing Tao separately reported the Dow at 52,495 and up 529 points, while on.cc earlier cited a 440-point gain during Tuesday's opening session.
- Investors rotated from high-valuation technology shares into healthcare, industrials, utilities and real estate, with 3M rising 5.9 percent and Hasbro gaining more than 10 percent.
- US September housing data weakened, with new home starts down 5.2 percent month on month to the lowest since May, as the 10-year Treasury yield eased to about 5.12 percent.
- Hong Kong stocks opened stronger on Wednesday, with the Hang Seng Index up 271 points at 24,139, Alibaba up 2.1 percent and Lenovo up 6 percent.
Why It Matters
For Hong Kong investors, the latest session points to a market still rewarding defensive and old-economy shares more than expensive growth names, which may affect sector selection locally as well. The rebound above 24,000 in early Hong Kong trading suggests Wall Street's rotation and lower US yields are feeding into sentiment, but the mixed Nasdaq performance shows technology risk appetite remains fragile.