Analysis
Why the Dow Barely Moved on a Day the Nasdaq Fell 1.9%
The Dow lost just 0.09% on October 14 while the Nasdaq dropped 1.88%. UnitedHealth rose 4.73%, Amgen 3.21% and Eli Lilly 3.62%, and Exxon and Chevron set record closes after five straight gains.
On October 14 the three main US indexes told three different stories. The Nasdaq Composite fell 1.88% and the S&P 500 1.11%. The Dow Jones Industrial Average ended at 51,621.48, down just 48.62 points, or 0.09%.
The difference came from which stocks each index holds and how it weights them. The Dow is price-weighted, so expensive shares count for more, and several of its most expensive members rose sharply:
UnitedHealth gained 4.73% to $395.62, its highest close since September 8, after giving up a 5% opening gain on its results day. Amgen rose 3.21% to $426.11, its best close since September 4. JPMorgan added 1.16%. Outside the Dow, Eli Lilly climbed 3.62% to $1,208.74, its highest close since August 25.
The Health Care Select Sector SPDR (XLV) rose 2.53% to $173.96, its biggest daily gain since August 19 and its highest close since August 25. Energy also worked: Exxon Mobil rose 1.68% to $177.01 and Chevron 1.98% to $222.04, both record closes after five straight gains, and the Energy Select Sector SPDR (XLE) closed at a record $67.63.
Technology moved the other way. The Technology Select Sector SPDR (XLK) fell 2.98%, and the Nasdaq's heavy weighting in chip and AI stocks made it the worst of the three indexes. Not every defensive sector benefited, either: utilities slipped 0.36% despite their reputation as a safe place in a sell-off.
Days like this are a reminder that "the market" is not one number. Someone holding a Dow tracker and someone holding a Nasdaq-100 tracker had very different Wednesdays.