The Dow Jones crossed the 50,000 mark on Friday in U.S. trading, driven by gains in energy and other cyclicals. Investors shifted toward smaller, cheaper stocks while major technology names lagged amid concerns over AI returns.
Data shows investments in energy rose 21% since October 2025. Materials jumped 16%, and consumer staples gained 15% over the same period.
Technology stocks fell over 10% in that span and did not lift the Dow. Software shares lost nearly $1 trillion during the week and moved into bearish territory.
The so-called Magnificent 7 largely sat out Friday’s jump. Amazon dropped about 5.5% and Alphabet slid nearly 3% as the group underperformed.
Amazon has invested $200 billion in AI capital spending and faces pressure to show returns. “Now, they’re all chasing to buy cheaper companies, perhaps indiscriminately,” said Tim Murray, Capital Markets Strategist at T. Rowe Price.
“People are going to have strong doubts and questions going forward,” said Thierry Wizman, global FX and rates strategist at Macquarie Group. The 50,000 milestone reflects a market rotation away from heavyweight technology names.
