Dow Hits Record Highs as AI Stocks Face Volatility

The Dow Jones Industrial Average achieved consecutive record closing highs on November 11 and 12, 2025, peaking at 47,927.96 on Tuesday. This rally was driven by a rotation into blue-chip healthcare stocks and optimism that a 53-day government shutdown would soon end as the U.S. House of Representatives returned to Washington to vote on a compromise bill.

In contrast, the Nasdaq Composite declined as investors shifted away from high-valuation technology stocks. Nvidia Corporation shares fell approximately 3% following the disclosure that SoftBank Group sold its entire stake in the company for $5.83 billion. Other AI-linked firms faced pressure, with CoreWeave shares plunging up to 16% after the company lowered its annual revenue forecast due to data center supply-chain delays.

Market volatility persisted as investors weighed a slowing job market, signaled by a weekly ADP report showing job losses, against stubborn inflation. The Federal Reserve System noted that a third interest rate cut for the year is not guaranteed. Meanwhile, Advanced Micro Devices, Inc. rallied 9% on November 12 after CEO Lisa Su projected annual compounded revenue growth exceeding 35% over the next few years.

Outside of tech, Paramount Skydance saw significant gains after raising its 2026 cost-cutting goal to $3 billion. President Donald Trump added to the economic tension by warning that a Supreme Court ruling against his use of emergency powers for tariffs could cause a national security disaster.