Dow futures are higher after notching fresh records: Live updates – cnbc.com
Traders work on the floor at the New York Stock Exchange in New York City, U.S., Dec. 12, 2025.
Jeenah Moon | Reuters
U.S. equities pulled back on Friday as investors continued to exit technology stocks and move into value areas of the market.
The S&P 500 fell 1.07% to end the day at 6,827.41, and the Nasdaq Composite declined 1.69% to 23,195.17. The Dow Jones Industrial Average finished down 245.96 points, or 0.51%, to settle at 48,458.05 after scoring a new intraday all-time high earlier in the session. The Russell 2000 index slid 1.51% to 2,551.46 but had also hit a fresh all-time high during the trading day.
The broad market index and tech-heavy Nasdaq were bogged down by a more than 11% drop in Broadcom, which some analysts think is because of margin compression worries. That’s even after the company beat fourth-quarter expectations and gave a strong forecast for the current quarter, saying artificial intelligence chip sales look to double.
As the AI trade faced more pressure, with names like AMD, Palantir Technologies and Micron seeing some losses alongside Broadcom, stocks in other areas of the market such as financials, health care and industrials received a bit of a boost. In those sectors, Visa and Mastercard as well as UnitedHealth Group and GE Aerospace were winners.
“Today is a value-outperforms-growth day,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “Investors are definitely skittish as it relates to AI — not outright pessimistic, but just kind of, I think, cautious and nervous and hesitant.”
Friday’s action marked another day of the rotation trade, as investors on Thursday poured into cyclical stocks that are considered more sensitive to the economy while taking profits in growth-oriented names tied to the AI trade. The move comes after the Federal Reserve on Wednesday cut interest rates for the third time this year.
A rise in shares of Visa and UnitedHealth, along with others such as Nike, propelled the Dow to close at a record in the prior session. The S&P 500 notched a new closing high as well, while the Nasdaq ended the day lower as high-flying tech stocks such as Alphabet and Nvidia dropped.
“The same things don’t outperform in markets month after month after month for forever, so this is normal,” Ellerbroek also said. “It’s to be expected, but it is unwarranted.”
With the day’s losses, the S&P 500 and Nasdaq scored a losing week, with the former down 0.6% and the latter losing 1.6%. The 30-stock Dow posted gains, however, up 1.1% on the week. Small-capitalization companies have outperformed their larger counterparts, meanwhile, with the Russell 2000 up 1.2% this week after notching fresh all-time and closing highs on Thursday.
