Dow Narrowly Avoids Its Worst Day of 2025 as Nasdaq Breaks Record
The Nasdaq set a new record while the Dow had a rough day in an uneven Thursday for the stock market.
Quick overview
- The Nasdaq Composite set a new record, rising 0.35% to surpass 21,240 points.
- The Dow Jones experienced a decline of 0.51%, nearly marking its largest drop since Donald Trump's presidency.
- Caterpillar, Salesforce, and Visa stocks contributed to the Dow's decline, but are showing signs of recovery in premarket trading.
- The tech market, particularly AI stocks, is expected to drive further gains for the Nasdaq and other indices in the coming days.
The Nasdaq Composite broke another record on Thursday as it added 0.35% and passed 21,240 points. At the same time, the Dow Jones nearly had its biggest decline since Donald Trump took office.
The Dow Jones lost 0.51% by the time trading closed off on Thursday. There were fears that it would lose as much as 0.70%, which would have marked the biggest drop for the index since Trump was sworn in. Meanwhile, the Nasdaq added enough to break its own all-time record high.
Caterpillar (CAT) stock lost 2.5% for the day, pulling down the whole of the Dow with it. Salesforce (CRM) lost more than any other Dow stock, though, with a 3.33% loss for the day. Visa (V) fell 2.25% as well, but all three of these stocks are up in premarket trading for Friday.
The Nasdaq Composite index outperformed the others thanks to some strong showings from a few of its healthcare stocks as well as CIMG (IMG) gaining 113%. IMG has done remarkably well recently since one of its subsidiaries announced it would be launching a high-end liquor in China. The company has done an excellent job of expanding its global reach and entering new markets this year.
What to Expect for the Market for the Next Few Days
The Dow is likely to gain back some of its lost ground on Friday, as premarket trading shows recovery from many of Thursday’s declining stocks. We anticipate a strong showing from the Nasdaq as tech stocks are still doing very well, and this index may end the week with another record-breaking high.
The tech market is being primarily driven by AI stocks, with excellent performances from Nvidia (NVDA), Palantir (PLTR), and TSMC (TSM) this week. With the U.S. ending its ban on high end AI chips for China, the market is more open there, and we expect AI stocks to reflect the promise of higher profits and greater revenue.
The S&P 500 closed low on Thursday with a drop of 0.08%, hurt partly by Eli Lily’s (LLY) poor performance after their weight loss pill failed to pan out. The index should recover through Friday, though, as we anticipate a strong end to the week across the board for the major stock indices.
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