Dow Holds Steady While Nasdaq Stumbles: What Moved Markets This Week

The Nasdaq dropped 2.5% this week as AI infrastructure spending concerns triggered a tech selloff, while the Dow held steady on strength from Travelers and UnitedHealth Group earnings. Netflix tumbled 8.5% despite meeting analyst expectations, underscoring investor risk-off sentiment even when companies deliver.

Chip stocks led the decline after Taiwan Semiconductor warned of higher capital expenditures and IBM issued a profit warning. The bifurcation between tech-heavy indexes and blue-chip industrials highlights rotation out of momentum names as questions around AI monetization intensify.

The Nasdaq's relative weakness against the Dow marks a reversal from 2024's tech leadership, with semis particularly vulnerable. TSM's capex increase—typically a bullish signal for demand—instead spooked investors worried about oversupply and margin compression. IBM's warning adds to concerns that enterprise tech spending may be peaking.