Dow Jones DJIA Heads to 50K, Nasdaq and AI Stocks Dive – CRCL Slides, SISCO Jumps Post Earnings
As investors moved away from risky tech and toward stable industrials, the Dow continued to rise as Nasdaq and Circle stock declined, SISCO
Quick overview
- The Dow Jones Industrial Average closed above 48,000 points for the first time, reflecting a shift towards stability in industrials and energy sectors.
- The Nasdaq Composite continued to decline, impacted by losses in speculative tech stocks like Meta Platforms and quantum computing.
- Cisco reported strong earnings, boosting its stock, while Circle Group saw significant revenue growth but faced profitability concerns.
- Overall market sentiment is mixed, with investors rotating out of high-growth tech stocks into more value-driven sectors amid economic uncertainty.
Live DOW Chart
As investors moved away from risky tech and toward stable industrials, the Dow continued to rise as Nasdaq and Circle stock declined and SISCO surged.
Dow Hits Record Territory Amid Market Unease
The Dow Jones Industrial Average continued its historic climb, closing above 48,000 points for the first time ever, extending its rebound from the 50-day moving average. This rally reflects renewed investor preference for stability over risk, as traders await the outcome of the U.S. House vote on the government shutdown and key economic data. With uncertainty clouding future releases of CPI and non-farm payrolls, the market’s direction remains fragile.
Dow Chart Daily – Rebounding Off the 50 SMA
Tech Weakness Persists, Quantum Names Lead Declines
While the S&P 500 remained nearly flat, the Nasdaq Composite extended losses, dragged lower by steep declines in speculative and overvalued sectors like semiconductors and quantum computing. Meta Platforms fell another 2.9%, marking a 22% drop from its 2025 highs. In contrast, NVIDIA and Microsoft eked out modest gains, signaling selective buying in established leaders amid broader weakness.
Wall Street Wrap: Diverging Indexes Reflect Sector Rotation
U.S. stocks ended Tuesday’s session with a mixed tone as investors balanced renewed optimism in industrials and energy with continued pressure on technology shares.
Major Index Closing Levels
Dow Jones Industrial Average:
- Closed at 48,254.82 points, rising +326.86 points (+0.68%).
- The Dow led the day’s performance, supported by gains in financials, energy, and industrials, as investors rotated out of growth-heavy names into more value-driven sectors.
S&P 500 Index:
- Ended slightly higher at 6,850.92 points, up +4.31 points (+0.06%).
- The benchmark index held steady, with strong earnings from select large-cap stocks offsetting weakness in the technology sector.
Nasdaq Composite:
- Finished at 23,406.46 points, down −61.84 points (−0.26%).
- Tech and AI-related shares lagged as traders took profits following recent rallies, while rising Treasury yields weighed on sentiment in the growth segment.
Russell 2000 Index:
- Closed at 2,451.24 points, slipping −7.04 points (−0.29%).
- Small-cap stocks underperformed, reflecting investor caution over higher borrowing costs and weaker near-term growth prospects.
Cisco and CRCL Earnings Released
Investor attention turned to Cisco Systems and CRCL, both of which released quarterly results. Cisco’s report was broadly positive which sent the stock popping in after hours, while CRCL’s performance was positive but lacked on profitability concerns which sent the stock dipping. With tech stocks already under pressure, any earnings disappointment could amplify volatility across the sector.
Cisco First Quarter Earnings Beat Expectations
- Q1 FY 2026 Results:
- Revenue: $14.9 billion
- Increase of 8% year over year
- Earnings per Share: GAAP: $0.72; Non-GAAP: $1.00
- GAAP EPS increased 6% year over year
- Non-GAAP EPS increased 10% year over year
- Revenue: $14.9 billion
- Q2 FY 2026 Guidance (1):
- Revenue: $15.0 billion to $15.2 billion
- Earnings per Share: GAAP: $0.69 to $0.74; Non-GAAP: $1.01 to $1.03
- FY 2026 Guidance (1):
- Revenue: $60.2 billion to $61.0 billion
- Earnings per Share: GAAP: $2.87 to $2.98; Non-GAAP: $4.08 to $4.14
Circle Group Q3 Performance
- Revenue Growth: Total revenue and reserve income surged 66% YoY to $740 million, marking a major milestone for Circle.
- Profit Surge: Net income jumped 202% to $214 million, fueled by broader adoption of Circle’s financial products.
- EBITDA Growth: Adjusted EBITDA rose 78% to $166 million, highlighting improved operational efficiency.
USDC Expansion and Market Momentum
- USDC in Circulation: Doubled to $73.7 billion, a 108% increase year-over-year.
- Platform Growth: USDC activity on Circle’s platform rose 1,277% YoY, signaling accelerating stablecoin demand.
- Market Share: Circle’s stablecoin market share climbed to 29%, up 643 basis points from last year.
Strategic Partnerships and Network Growth
- Major Collaborations: Partnered with Visa, Deutsche Börse, Kraken, and Unibanco Itaú to strengthen adoption.
- Arc Testnet Launch: Attracted interest from 100+ leading firms in both digital finance and traditional banking.
- Payments Network Expansion: Enrolled 29 new financial institutions in Q3, with 55 under review and 500+ in the pipeline, underscoring robust institutional momentum.
Big Tech Performance Snapshot – Mixed Results Across the Board
- Meta Platforms (META): ↓ 2.90% – Led the tech sector losses amid renewed concerns over digital ad spending and regulatory scrutiny.
- Tesla (TSLA): ↓ 2.04% – Extended its decline as margin pressures and slowing EV demand weighed on investor sentiment.
- Amazon.com (AMZN): ↓ 1.95% – Pulled back after a strong run, with investors cautious ahead of holiday season guidance.
- Alphabet Class A (GOOGL): ↓ 1.56% – Fell modestly as investors rotated out of high-growth tech stocks into safer sectors.
- Apple (AAPL): ↓ 0.65% – Minor losses as supply chain updates and softening demand in China kept the stock under pressure.
- NVIDIA (NVDA): ↑ 0.33% – Managed small gains, supported by ongoing AI-driven demand despite broader chip sector weakness.
- Microsoft (MSFT): ↑ 0.48% – Slightly higher as investors favored its steady cloud and enterprise exposure over riskier tech names.
Conclusion: The contrasting market moves highlight a deeper shift in investor sentiment—from chasing speculative hype to favoring dependable earnings. As the Dow eyes the 50,000 milestone, the path forward for tech remains uncertain, hinging on whether upcoming results can restore confidence in an industry losing its shine.
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