The stock market posted another day of mixed strength as the S&P 500 (+0.1%) and Nasdaq Composite (-0.3%) remained near their flatlines as mega-cap tech lagged, while a rotation into more value-oriented holdings saw the DJIA (+0.7%) capture record highs and close above the 48,000 mark for the first time. 

Despite the tech-heavy Nasdaq's underperformance, the PHLX Semiconductor Index gained 1.5%, helped by a sharp advance in Advanced Micro Devices (AMD 258.89, +21.37, +9.00%) following details from its financial analyst day. AMD projected $100 billion in data center revenue over the next three to five years and expects a $1 trillion total addressable AI market by 2030.

NVIDIA (NVDA 193.80, +0.64, +0.33%), however, advanced minimally, as mega-cap names underwhelmed again today. 

Not even news of Anthropic investing $50 billion in American AI infrastructure could prompt momentum from the mega-cap tech group, as all of the magnificent seven names, with the exception of NVIDIA and Microsoft (MSFT 511.14, +2.46, +0.48%), traded lower. The information technology sector closed with a modest 0.3% gain. 

The communication services sector (-1.2%) faced the brunt of the mega-cap weakness, with Meta Platforms (META 609.01, -18.07, -2.88%) furthering its slide this month while Alphabet (GOOG 287.43, -4.31, -1.48%) faced some profit-taking after a strong start to the week. 

Elsewhere, the consumer discretionary sector (-1.1%) embodied the recent trend of mega-cap underperformance pitted against solid breadth. Amazon (AMZN 244.20, -4.90, -1.97%) and Tesla (TSLA 430.60, -9.02, -2.05%) moved lower, inflicting losses on the sector despite a majority of its components trading higher. 

Meanwhile, the energy sector (-1.4%) was the weakest performer as crude oil futures settled today's session $2.52 lower (-4.1%) at $58.50 per barrel after Reuters reported that OPEC now expects global oil supply to match demand by 2026, shifting from a previously anticipated supply deficit.

The broader market did not see quite as strong participation as yesterday's trade, with advancers and decliners finishing nearly even on both the NYSE and the Nasdaq. 

The S&P 500 Equal Weighted Index (+0.2%) still closed higher, but a 0.2% dip in the Vanguard Mega Cap Growth ETF limited the advance of the market-weighted S&P 500 (+0.1%). 

Six S&P 500 sectors captured gains, with notable performances across a number of blue-chip stocks contributing to the DJIA's record-setting performance. 

The health care sector (+1.4%) continued its recent hot streak that seats it with a 4.6% week-to-date gain. The sector's largest component, Eli Lilly (LLY 1017.78, +29.16, +2.95%), was once again a top contributor, expanding on recent strength after reaching an agreement with the Trump administration last week to lower the price of its GLP-1 obesity drugs. The stock is up 10.1% for the week and 18.0% for the month. 

Managed care names, such as Dow component UnitedHealth (UNH 339.06, +11.61, +3.55%), were among the top performers in the health care sector. 

Elsewhere, the financials sector (+0.9%) also captured a solid gain. President Trump is set to dine with JPMorgan Chase (JPM 320.51, +4.89, +1.55%) (a Dow component) CEO Jamie Dimon and other top finance executives this evening, adding to positive sentiment across major banking names such as Goldman Sachs (GS 839.05, +28.74, +3.55%) (another Dow component). 

Optimism surrounding a potential end to the government shutdown provided another supportive undertone. The House is expected to vote tonight on a funding bill, and House Speaker Mike Johnson told CNN he is "very optimistic" about its passage.

Airline stocks, which had faced pressure amid air traffic disruptions, rallied on the improved outlook. Delta Air Lines (DAL 60.47, +2.73, +4.73%) moved higher after CEO Ed Bastian said operations should return "close to normal" by Saturday if the government reopens, with United Airlines (UAL 99.97, +5.02, +5.29%) and Southwest Air (LUV 33.36, +1.37, +4.28%) helping to keep the industrials sector (+0.1%) above its flatline. 

Dovish investors look towards the end of the government shutdown and the ensuing data releases for further signs of softening in the labor market, which could prompt the FOMC to move forward with another 25-basis point rate cut in December. 

White House Press Secretary Karoline Leavitt said that the October jobs and CPI reports will likely never be released due to the government shutdown and added that Q4 GDP will likely be 200 basis points lower due to the shutdown.

Atlanta Fed President Raphael Bostic (FOMC non-voting) reiterated that inflation remains a greater concern than the labor market and supports holding rates steady until the 2% target is in clear sight, according to Bloomberg. Mr. Bostic also announced plans to retire at the end of his term on February 28, 2026.

Meanwhile, National Economic Council Director Kevin Hassett told Bloomberg that he believes rates could be "a lot lower" and added he would accept the Fed Chair nomination if offered by President Trump.

None of the Fed commentary had a significant effect on the market's current rate cut odds or the standing of the major averages, which traded in a steady range for the majority of the session. Today's mixed finish masked an encouraging rotation into previously overlooked sectors, suggesting investors are broadening their exposure beyond the year's familiar growth leaders.

U.S. Treasuries climbed on Wednesday, making for a solid bounce from Monday's retreat despite an afternoon dip from highs that followed the completion of a lousy $42 billion 10-year note sale. The 2-year note yield settled down two basis points to 3.57%, and the 10-year note yield settled down four basis points to 4.07%. 

• Nasdaq Composite: +21.21% YTD
• S&P 500: +16.5% YTD
• DJIA: +13.4% YTD
• Russell 2000: +9.9% YTD
• S&P Mid Cap 400: +4.9% YTD

Reviewing today's data:

• The weekly MBA Mortgage Index rose 0.6% after falling 1.9% a week ago. The Purchase Index was up 5.8% while the Refinance Index fell 3.4%.