Stock Market Today: Dow rises 175 points toward a record, but S&P 500 and Nasdaq drop as the rotation trade trumps jobs data

The Dow Jones Industrial Average climbed 175 points Thursday, heading toward its 20th record close of 2025, while the S&P 500 and Nasdaq fell as investors rotated out of technology stocks. The divergence came despite jobs data released earlier in the session, with the Dow's advance driven by strength in non-tech sectors ahead of the Independence Day holiday weekend.

The rotation trade dominated price action, with capital flowing away from mega-cap technology names that have led the market higher this year. The S&P 500 and Nasdaq both closed lower as a result of the tech sector weakness, illustrating the narrow leadership challenge facing broader indexes.

U.S. bond markets closed early at 2 p.m. Eastern in observance of the holiday, contributing to lighter-than-normal trading volumes. The Dow's march toward a milestone 20th record of the year underscores the strength in industrial and cyclical names, even as growth stocks face pressure from rotation flows.