Dow Jones Stock Markets declined sharply on Friday, 13 December 2025, as a broad sell-off in technology stocks dragged major US indices lower. The Nasdaq Composite led losses, falling 1.6%, while the S&P 500 dropped roughly 1%. The Dow Jones Industrial Average slipped 0.5%, though it still managed a 1% gain for the week, outperforming tech-heavy peers.
Investor sentiment weakened after renewed concerns about artificial intelligence profitability and rising costs weighed on the technology sector. Despite solid earnings reports, market participants reassessed lofty valuations, prompting a rapid rotation out of growth stocks.
Nasdaq Leads Tech Sell-Off Across US Stock Markets
The Nasdaq’s decline reflected mounting skepticism around AI-driven earnings momentum. Investors sold off technology shares after earnings from Broadcom and Oracle, which, while strong on paper, raised concerns about long-term margins and capital expenditure demands.
This shift triggered a broader pullback across US stock markets, particularly among high-multiple technology names that had rallied aggressively throughout 2025. Analysts noted that profit-taking accelerated as traders repositioned ahead of year-end.
Dow Jones Stock Markets Benefit From Rotation Into Value Stocks
While tech stocks struggled, Dow Jones Stock Markets showed relative resilience due to their heavier exposure to value and cyclical sectors. Financials, industrials, and consumer staples attracted renewed inflows as investors adjusted portfolios following the Federal Reserve’s third interest rate cut of the year.
The rate cut boosted optimism about broader economic growth, encouraging capital rotation into companies expected to benefit from lower borrowing costs and improved demand. This dynamic helped cushion losses in the Dow compared to the Nasdaq.
Treasury Yields Rise Despite Federal Reserve Rate Cut
Bond markets reacted strongly to shifting expectations for US growth. Treasury yields climbed as investors priced in stronger economic momentum:
- 10-year Treasury yield: above 4.18%
- 30-year Treasury yield: exceeded 4.85%
Rising yields contributed to pressure on growth stocks, particularly in the technology sector, while reinforcing the appeal of dividend-paying and cyclical companies.
Gold Surges as Markets Navigate Volatility
Gold prices continued to climb, putting the precious metal on track for its best annual performance since 1979. Investors turned to gold as a hedge against market volatility, inflation uncertainty, and geopolitical risk, further reflecting cautious sentiment across Dow Jones Stock Markets and global equities.
Corporate News Moves US Markets
Several corporate developments influenced trading:
- Lululemon shares jumped more than 9% after the company announced CEO Calvin McDonald’s upcoming exit.
- Former President Donald Trump commented on potential successors for the Federal Reserve chair, identifying Kevin Hassett as a leading candidate, adding another layer of uncertainty to monetary policy expectations.
What’s Next for Dow Jones Stock Markets
Market strategists expect continued volatility as investors weigh:
- Sustainability of AI-driven earnings growth
- Future Federal Reserve policy signals
- Treasury yield movements
- Ongoing rotation between growth and value stocks
While short-term pressure remains, analysts suggest Dow Jones Stock Markets could remain more stable than tech-heavy indices if economic data continues to support cyclical recovery.
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