Wall Street Splits Direction: Dow Hits Record High as Tech Stocks Face Fresh Pressure

U.S. stocks delivered a mixed performance on Thursday as investors navigated a blend of new economic data and corporate earnings that fueled both optimism and caution. The S&P 500 slipped about 0.3%, while the tech-heavy Nasdaq 100 fell more than 1%, marking its lowest level in a week. In contrast, the Dow Jones Industrial Average surged roughly 1%, reaching a fresh record high and outperforming its peers.

The sharpest drag came from the technology sector after a major company reported quarterly results that fell short of expectations, particularly in cloud-computing revenue. Although the company raised its capital-spending outlook for 2026—adding an additional $15 billion for a total of $50 billion—this aggressive investment plan reignited investor concerns about whether massive spending on AI infrastructure will truly deliver profitable returns. The update revived broader questions about tech valuations and the sustainability of the current AI investment wave.

Despite tech-sector pressures, the wider market found some support from U.S. labor data. Weekly jobless claims rose to 236,000, the highest level in three months. This increase pushed Treasury yields lower, offering relief to equity markets. The yield on the 10-year U.S. Treasury fell by 4 basis points to 4.11%, helping ease financial conditions slightly.

Adding to the positive side of the ledger, a leading payments company saw its stock climb 3%, providing a strong boost to the Dow and contributing to its standout session.

On the economic front, the U.S. trade deficit for September unexpectedly narrowed to $52.8 billion—its lowest level in more than five years and well below expectations of a widening to $63.1 billion.

Meanwhile, the third-quarter earnings season is nearing its end, with 495 out of 500 S&P 500 companies having already reported their results. Impressively, 83% of them have exceeded expectations, driving overall earnings growth of 14.6% year-over-year—nearly double what analysts had initially projected.

Overall, Wall Street’s Thursday session underscored a market torn between record-breaking industrial strength and renewed uncertainty in the technology sector, leaving investors weighing short-term pressures against longer-term optimism.