The unwinding of the AI trade is dragging on the Nasdaq, but the Dow is holding its ground.
The blue-chip index was up 200 points in afternoon trading. The S&P 500 was recovering from its lows earlier in the session to a decline of 0.2%. The Nasdaq Composite was still down 0.9%.
Market participants were shedding riskier stocks. The evidence: the Invesco S&P 500 High Beta ETF’s 1.3% decline. Likewise, the Invesco S&P 500 Low Volatility ETF was up 1%.
Chips, utilities, and Big Tech stocks were also struggling. That explains why the Dow is holding up better than the other two major indexes: 18 of its 30 stocks were on the rise.
The Dow lacks a large chunk of key AI stocks, and also gives less weight to some tech giants like Nvidia because it weighs its members by stock price size rather than market cap.