U.S. stocks split down the middle on Wednesday as a rotation out of high-flying technology names met strength in healthcare and consumer stocks. The Dow Jones Industrial Average pushed to another all-time closing high, but the tech-heavy Nasdaq Composite slipped as chipmakers came under renewed pressure. The story of the day was earnings season: strong reports from drugmaker Eli Lilly and Walt Disney lifted the blue chips, while a disappointing reaction to Advanced Micro Devices’ results dragged on the broader tech trade.
What Moved Markets
The Dow Jones Industrial Average rose 263.12 points, or 0.49 percent, to close at 54,349.12, its latest record finish. The S&P 500 slipped 12.98 points, or 0.17 percent, to end at 7,723.54, easing back from Tuesday’s record. The Nasdaq Composite fell the hardest, dropping 221.55 points, or 0.83 percent, to finish at 26,363.44 as semiconductor and megacap technology shares weakened.
The divide reflected a market taking profits in the corners that have run furthest this year. Healthcare, materials, and consumer discretionary sectors advanced, while technology, communications, and energy lagged. Energy shares slid as crude oil eased on hopes for calmer conditions in the Middle East. Investors also digested a batch of economic data, including the U.S. trade balance and the ISM services index, as they looked for clues on the strength of the economy heading into the fall.
Notable Movers
Eli Lilly (LLY) jumped more than 6 percent after the drugmaker beat quarterly earnings and revenue estimates and raised its full-year 2026 guidance, citing continued surging demand for its weight-loss drug Zepbound and diabetes treatment Mounjaro. The gain helped power the Dow’s record close.
Walt Disney (DIS) rose about 3.6 percent after its quarterly results topped expectations, with higher theme-park spending and improving streaming margins driving the beat. Adjusted earnings of $2.06 per share came in well ahead of the $1.86 analysts had forecast.
Advanced Micro Devices (AMD) sank nearly 9 percent, closing around $472.50, even though the chipmaker reported better-than-expected second-quarter revenue of $11.5 billion and solid guidance. Investors focused instead on questions about the company’s gross-margin trajectory, and the selloff weighed on the wider semiconductor group.
SpaceX (SPCX) fell roughly 7.5 percent despite beating estimates, as the newly public company’s high expectations left little room for anything short of a blowout.
Looking Ahead
With the calendar deep into earnings season, investors will keep parsing corporate results for signs of whether the AI-driven rally can broaden beyond a handful of leaders or whether the rotation into value and defensive names has further to run. The split showing between a record-setting Dow and a retreating Nasdaq suggests traders are growing more selective. Watch upcoming reports from remaining megacap and chip names, along with fresh reads on inflation and the labor market, for the next cues on the Federal Reserve’s path. For now, the market’s message is one of caution beneath the surface, even as the headline indexes hover near record territory.