Dow Rises 0.9% to 52,080 as Nasdaq 100 Falls 0.6%

U.S. equities were split by midday Thursday as a hot inflation read stoked Federal Reserve rate-hike bets, hammering chip and AI-hardware stocks while the Dow Jones Industrial Average pushed above 52,000 as investors rotated into defensives and older-economy names. Wednesday’s inflation data was a cold shower for the Fed’s dovish hopes. September producer prices rose 6.3% year over year, the biggest gain since 2022 and above the 5.5% economists expected.

A Fed hike at the meeting in two weeks is now seen as roughly a coin flip. AI spending fears weighed on the global chip complex overnight: South Korea’s Kospi fell 8%, with Samsung Electronics (OTC: SSNLF ) down 9% and SK Hynix Inc. (NASDAQ: SKHY ) 11% lower, while Japan’s Nikkei 225 dropped 5%. Seoul-listed shares of SK Hynix have now lost nearly a third of their value over the past seven sessions, the worst slump since November 2008.

Oil edged lower. West Texas Intermediate crude slipped 0.5% to $94.61 a barrel, while Brent crude eased 0.6% to $105.41. Treasuries rallied as growth fears resumed: The 10-year Treasury yield fell about 8 basis points to 5.10% The 2-year yield dipped about 3 basis points to 4.77%, and The 30-year yield declined about 10 basis points to 5.43%. By midday Thursday, the divergence across U.S.

equity markets was stark: defensives and value held up while technology bore the brunt of the selling. The S&P 500 edged up 0.1% to around 7,726, while the Dow Jones Industrial Average gained 0.9%, or about 459 points, to 52,080. Walmart Inc. (NASDAQ: WMT ) led the Dow strength, up 2.3%, followed by Visa Inc.

(NYSE: V ), up 2.0%, and McDonald’s Corp. (NYSE: MCD ), up 2%. The Nasdaq 100 fell 0.6% to about 29,783 as chipmakers sold off. The iShares Semiconductor ETF (NYSE: SOXX ) is on track for its eighth straight session of declines.

Gold rebounded as yields eased. The SPDR Gold Shares (NYSE: GLD ) rose 1.1%, with spot gold near $4,141 an ounce, still down about 2.9% for the month. Read Also: QUICK SPARK: Meet the 15 Worst-Performing Chip Stocks in the Last 7 Sessions Thursday’s Performance In Major US Indices Index Last % Change MTD YTD S&P 500 7,726.26 +0.09% +0.98% +12.87% Dow Jones 52,080.31 +0.89% +2.31% +8.36% Nasdaq 100 29,782.65 -0.56% -2.06% +17.95% Russell 2000 2,750.98 +0.79% -1.64% +10.84% Updated by 12:09 PM ET According to the Pro platform: The iShares Russell 2000 ETF (NYSE: IWM ) gained 0.7%. The Vanguard S&P 500 ETF (NYSE: VOO ) edged up 0.0%.

The SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA ) rose 0.9%. The Invesco QQQ Trust (NASDAQ: QQQ ) slid 0.6%. Healthcare And Housing Rally As Chip Rout Drags Tech Among S&P 500 sectors: The Health Care Select Sector SPDR Fund (NYSE: XLV ) led with a 2.6% gain Followed by the Materials Select Sector SPDR Fund (NYSE: XLB ) (+1.4%) The Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY ) (+1.4%) The Consumer Staples Select Sector SPDR Fund (NYSE: XLP ) (+1.2%) and The Communication Services Select Sector SPDR Fund (NYSE: XLC ) (+1.2%).

The Real Estate Select Sector SPDR Fund (NYSE: XLRE ) added 0.9% and the Financial Select Sector SPDR Fund (NYSE: XLF ) gained 0.8%. On the downside, the Energy Select Sector SPDR Fund (NYSE: XLE ) fell 1.3% as crude slipped, and the Technology Select Sector SPDR Fund (NYSE: XLK ) lost 1.3%. The Industrials Select Sector SPDR Fund (NYSE: XLI ) declined 0.4% and the Utilities Select Sector SPDR Fund (NYSE: XLU ) slipped 0.4%. Falling Yields Lift Rate-Sensitive Industries The iShares U.S.

Home Construction ETF (BATS: ITB ) jumped 3.6% and the SPDR S&P Retail ETF (NYSE: XRT ) gained 3.3%. The VanEck Gold Miners ETF (NYSE: GDX ) climbed 2.9% alongside bullion, and the iShares Biotechnology ETF (NASDAQ: IBB ) rose 2.7%. Among individual movers, Penske Automotive Group, Inc. (NYSE: PAG ) led the Russell 1000 gainers with a rise of about 8.5% after agreeing a deal with its two largest shareholders to go private at a $16.3 billion enterprise value.

Quantinuum Inc. (NASDAQ: QNT ) jumped 10.3%, Karman Holdings Inc. (NYSE: KRMN ) rose 10.0%, TransUnion (NYSE: TRU ) gained 9.0% and Etsy, Inc. (NYSE: ETSY ) added 7.8%.

On the losing side, Rocket Lab Corporation (NASDAQ: RKLB ) sank 10.6% after delaying the debut of its medium-lift rocket. Vicor Corporation (NASDAQ: VICR ) plunged 13.8%, the biggest Russell 1000 decliner, while Sanmina Corporation (NASDAQ: SANM ) fell 8.2%, Advanced Energy Industries, Inc. (NASDAQ: AEIS ) dropped 7.9% and MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI ) lost 7.6%.

They fell with the broader AI-infrastructure and chip sell-off. Vicor is due to report third-quarter results on Oct. 20. Elsewhere in AI hardware, Dell Technologies Inc.

(NYSE: DELL ) slid 7.4%. Thursday’s Russell 1000 Top Gainers Name % change Quantinuum Inc. +10.31% Karman Holdings Inc. +10.04% TransUnion +8.97% Penske Automotive Group, Inc.

+8.55% Etsy, Inc. +7.84% Thursday’s Russell 1000 Top Losers Name % change Vicor Corporation -13.78% Rocket Lab Corporation -10.64% Sanmina Corporation -8.23% Advanced Energy Industries, Inc. -7.93% MACOM Technology Solutions Holdings, Inc. -7.60% Image: Shutterstock