The Dow Jones Industrial Average closed above 48,000 for the first time in history on Nov. 12, 2025. Investors cheered signs that the longest U.S. government shutdown may finally be coming to an end.
The 30-stock Dow surged 326.86 points, or 0.68%, to finish at 48,254.82, marking a new closing and intraday record on Nov. 12. The S&P 500 added 0.06% to 6,850.92, while the Nasdaq Composite slipped 0.26% to 23,406.46, reflecting weakness in some technology names.
The market got charged-up on news that Congress was moving toward a funding agreement to reopen the federal government. The Senate had already passed a spending bill earlier this week, and the House of Representatives then passed the bill and sent it to President Donald Trump. The bill will provide federal workers with back pay and keep the government open until Jan. 30 (according to Yahoo Finance).
Financial Stocks Lead the Charge
The Dow’s record-setting rally was fueled by banking and financial stocks, which surged on optimism about economic reopening. Goldman Sachs, JPMorgan Chase, and American Express all notched new highs on the day, as reported by CNBC.
The Financial Select SPDR Fund XLF, tracking the S&P 500 financial sector, gained about 0.9%. The Dow Jones invests one-fourth of its portfolio in the financial sector.
Is Dow Jones Better-Positioned Than Tech-Heavy Nasdaq Now?
While financials rebounded, artificial intelligence-related stocks continued their volatile run. The AI space, in any case, has been under pressure in recent times due to bubble concerns. Analysts are divided in their opinions about AI overvaluation.
According to Josh Chastant, portfolio manager of public investments at GuideStone Funds, “there’s real demand and use case for AI.” “Tech valuations are rich but not necessarily a bubble. It’s reasonable for investors to trim gains and re-diversify across other parts of the market,” he said, as quoted on the above-mentioned CNBC article.
Gains in Healthcare
The healthcare sector has received a boost lately as the investors have rotated to non-cyclical and lower-valuation sectors as diversification from the tech space. Healthcare sector has about 12% exposure to the fund SPDR Dow Jones Industrial Average ETF Trust DIA.
Will the Dow Jones Rally Last?
The stock market’s recent revival has been aided by optimism around the shutdown resolution. However, along with many analysts, we also believe that the continuation of the rally will depend on upcoming economic data points. Investors will soon refocus on fundamentals.
Bottom Line
So, overall, the Dow Jones’ performance should be good in the near term, if not great. Its limited focus on tech stocks may now favor the index. Investors can keep a close tab on the DIA ETF. The DIA ETF has gained 4.8% over the past one month compared with a 3.2% uptick in the Nasdaq-100 ETF Invesco QQQ Trust, Series 1 QQQ. However, if the Fed continues to cut rates ahead, the Nasdaq main again flex its muscles, ruling out all AI bubble fears and top the Dow Jones.
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Invesco QQQ (QQQ): ETF Research Reports Financial Select Sector SPDR ETF (XLF): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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