Dow rises more than 300 points to record, Nasdaq falls again as chipmakers struggle: Live updates

The Dow erased a 423.46-point rally Wednesday, closing marginally lower after touching record highs intraday, while the Nasdaq fell as chipmakers dragged on tech shares. The divergence underscores a rotation away from mega-cap technology as investors hunt opportunities beyond the market's recent leaders.

Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Securities, told CNBC the U.S. economy looks healthy and suggested investors broaden their focus beyond the largest tech names. The 423-point Dow swing—from session highs to a flat close—reflects hesitation at new peaks even as the index outperformed both the Nasdaq and chip-heavy sectors.

The Nasdaq's decline marks another session of weakness for semiconductors, which have led much of the recent bull run but now face profit-taking and sector-specific headwinds. The Dow's ability to approach records while tech stumbles signals narrowing leadership isn't necessarily bearish for equities overall—it may indicate a healthier, broader market.