By Matt Wirz
Investor optimism about an expected end to the U.S. government shutdown propelled the Dow Jones Industrial Average above 48000 for the first time, setting a contrast to continued weakness in technology stocks.
The prospect that the shutdown would resolve as early as Wednesday lifted large banks, airline companies and consumer products makers, reflecting anticipation that air travel-restrictions will be lifted and that government employees will start getting paid again, boosting economic activity.
The Dow finished the day 0.7%, or 327 points higher, to 48254.82, its 17th record closing high of the year. The blue-chip index has beaten the tech-heavy Nasdaq composite by 2.38 percentage points over the past two trading days, its largest such outperformance since February, according to Dow Jones Market Data. UnitedHealth Group and Goldman Sachs led the Dow higher, both jumping about 3.5%, while Nike gained 1.7%. In transportation, United Airlines and Delta Air Lines both popped about 5%
The S&P 500 finished the session up less than 0.1%, while the Nasdaq ended 0.3% lower.
Most large tech stocks missed out on today's relief rally, after rebounding early this week in response to the Senate's passage of a measure to end the impasse.
"I'm skeptical that there's going to be some great rotation away from tech that sustains the bull market," said Justin Bergner, a portfolio manager at Gabelli Funds. "However, on days that tech stocks are a little mixed, the bull market will find other sectors that contribute."
Nasdaq's downturn continued a broad selloff that started in late October after several companies reported larger-than-anticipated spending plans tied to artificial intelligence.
"After last week's selloff we're not seeing a major rebound," said Marta Norton, chief investment strategist for Empower Investments. "There's still an overhang from all the questions about excessive valuations on artificial intelligence -- and rightfully so."
Oracle shares dropped about 4%, while data-analytics company Palantir Technologies gave up about 3.5% and Meta Platforms almost 3%. One notable exception was microchip manufacturer Advanced Micro Devices, which gained about 9% after the company told analysts it expects chip sales to climb 80% annually in coming years.
Analysts remain divided over whether the Federal Reserve will cut interest rates again in December. The central bank remains split over which poses the greater threat, inflation or the weakening jobs market.
Treasury yields declined, with the 10-year's finishing the day at 4.066%. Treasury Secretary Scott Bessent said in prepared remarks that the administration deserved credit for this year's rally in government bonds.
Among commodities, precious metals rallied, with silver futures notching a record. U.S. oil futures skidded to a three-week low after OPEC left its demand forecasts unchanged and highlighted rising inventories.
Write to Matt Wirz at matthieu.wirz@wsj.com
(END) Dow Jones Newswires
November 12, 2025 16:54 ET (21:54 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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