The Dow Jones Industrial Average (INDEX: DJI) climbed 20 points to 50,135 Tuesday. That’s the third straight record close.
Walt Disney Co. (NYSE: DIS) jumped 3.5%. Nike Inc. (NYSE: NKE) gained 2.4%. Those moves offset weakness in financials.
The S&P 500 (INDEX: SPX) edged up 0.04% to 6,967 after Monday’s 0.47% rally. The Nasdaq Composite (INDEX: IXIC) dipped 0.06% to 23,224 as investors rotated into mid-caps.
Goldman CEO Calls Software Selloff Overdone
Goldman Sachs Group Inc. (NYSE: GS) CEO David Solomon told investors the software rout went “a little too broad.” He spoke Tuesday at a financial services conference in Key Biscayne, Florida.
“There will be winners and losers,” Solomon said. “A lot of companies are going to adjust and do well.”
The S&P 500 Software Services Index jumped 2.9% Monday. That extended Friday’s rebound after last week’s AI panic wiped $2 trillion off software valuations.
Tech stocks climbed 1.6% Monday. Alphabet Inc. (NASDAQ: GOOG) and Nvidia Corp. (NASDAQ: NVDA) led gains Tuesday, though the Nasdaq gave back early momentum.
Banks Sink on AI Wealth Management Fears
Wells Fargo & Co. (NYSE: WFC) dropped 3%. Bank of America Corp. (NYSE: BAC) and Morgan Stanley (NYSE: MS) fell more than 3% each.
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Analysts flagged AI threats to wealth management businesses. The sector’s been a profit engine for big banks.
Intel Corp. (NASDAQ: INTC) tanked 4%, leading Dow losers. Amgen Inc. (NASDAQ: AMGN) fell 2.1%.
Retail Sales Data Fuels Rate Cut Bets
December retail sales came in flat. Economists expected 0.4% growth.
Ten-year Treasury yields fell after the weak print. Markets now price in higher odds the Fed cuts rates before year-end.
American Express Co. (NYSE: AXP) gained 2.1%. Home Depot Inc. (NYSE: HD) rose 2% and Microsoft Corp. (NASDAQ: MSFT) added 1.7%.
Alphabet just sold $32 billion in bonds to fund AI infrastructure. Wells Fargo estimates hyperscalers will spend $660 billion on AI facilities in 2026, up 24% from 2025.
