Chip Rout Fuels Dow’s Record-Breaking Rally

A sharp sell-off in chip stocks is providing fuel for the Dow Jones Industrial Average as it races toward a fresh record. On Tuesday, the blue-chip index climbed about 700 points, or 1.3%, to trade just under 52,900 — roughly 450 points shy of the all-time peak reached in the first week of July.

Taken in isolation, the move signals broad risk appetite, but the underlying dynamics tell a different story. Money appears to be rotating out of high-flying semiconductor names and into industrial and cyclical components that dominate the Dow, highlighting a shift in market leadership rather than an across-the-board rally.