Market Recap: Dow Surpasses 50,000 for First Time as Tech Rebounds; Nvidia Soars 7.9% on $650B AI Spending Plan

The U.S. market capped a historic day with the Dow Jones Industrial Average closing above 50,000 for the first time, surging 2.47% to 50,115.67. The S&P 500 rose 1.97% to 6,932.30, while the Nasdaq Composite climbed 2.18% to 23,031.21. Commodities saw mixed results: gold futures jumped 2.04% to $4,989.1, and copper gained 1.08%, but WTI crude edged up 0.28% to $63.47. Sectors were broadly positive, with Energy (+1.87%), Materials (+2.89%), and Information Technology (+4.35%) leading gains, while Communication Services (-0.89%) lagged. The market exhibited a cautiously bullish sentiment, driven by AI optimism and a rebound in tech stocks after recent volatility.

Hot Stocks

Tech Giants:

• Nvidia (NVDA): +7.87%
• Tesla (TSLA): +3.50%
• Microsoft (MSFT): +1.90%
• Apple (AAPL): +0.80%
• Meta (META): -1.31%
• Amazon (AMZN): -5.55%

AI/Chip Stocks:

• MicroStrategy (MSTR): +26.11%
• Coinbase (COIN): +13.00%
• Arm Holdings (ARM): +11.56%
• Super Micro (SMCI): +11.44%

Chinese ADRs:

• Tian Ruixiang (TIRX): +15.00%
• Jiuzi Holdings (JZXN): +42.74%

Energy & Mining:

• Hecla Mining (HL): +6.85%
• Global Interactive (GITS): -25.68%

Analysts Opinions

Analysts highlighted a shift in market dynamics as AI-driven optimism collided with profit-taking pressures. Jefferies’ Laurence Alexander maintained a “Hold” on Dow Inc. (DOW), citing mixed earnings history and restructuring challenges, while Deutsche Bank’s Jim Reid noted a transition from “every tech stock is a winner” to a more selective landscape. The focus on AI’s disruptive potential—exemplified by Anthropic’s new tools—spooked software stocks, with Salesforce down 28% year-to-date. Meanwhile, Barclays and Interactive Brokers cautioned against overestimating AI’s immediate threat to industry-specific software, emphasizing the need for durable revenue growth to justify valuations.

Macro & Corporate Narratives

Dow Crosses 50,000 for First Time

The Dow’s historic close above 50,000 was fueled by a 2.2% rebound in industrials and financials, with consumer sentiment hitting a 10-month high. Analysts attributed the milestone to AI optimism and expectations of Fed rate cuts, though the index’s narrow composition drew skepticism about its economic significance.

Nvidia Surges on $650B AI Spending Plan

Tesla executives revealed plans to scale U.S. solar production to 100 gigawatts by 2028, aligning with Musk’s vision for renewable energy infrastructure. The move contrasts with Trump’s criticism of renewables and highlights a strategic pivot amid slowing EV demand.

OpenAI Defends Foundational Research Amid Exodus

OpenAI executives, including Chief Research Officer Mark Chen, defended the company’s commitment to exploratory AI projects despite a “code red” refocus on product development. The firm faces talent attrition, with VP Jerry Tworek among recent departures.

Bitcoin Stabilizes as Crypto Miners Pivot to AI

Bitcoin rebounded above $70,000, while Bitfarms rebranded as Keel Infrastructure to focus on AI data centers. Sberbank also announced Russia’s first bitcoin-backed loan pilot, signaling gradual crypto legalization.

Fed’s Jefferson Cautious on Rate Cuts

Federal Reserve Vice Chair Philip Jefferson emphasized a “data-driven” approach to rate cuts, noting the current 3.50%-3.75% rate is “broadly neutral.” He projected 2.2% GDP growth for 2026 but warned AI-driven capital investment could temporarily inflate inflation.