The Dow Jones Industrial Average surged nearly 600 points to close at a record high Thursday, driven by broader market gains. The blue-chip index climbed 594.83 points, ending at 52,900.07. This rally occurred as investors continued to rotate out of technology shares, with the Nasdaq Composite experiencing a notable slide, losing 0.8%.

Tech weakness impacted specific names, with Netflix shares bucking the trend, jumping 5% and pacing for its best day since late February. Meanwhile, Tesla shares sank as much as 7.3% despite reporting strong second-quarter delivery figures that surpassed Wall Street expectations. European markets largely posted gains, with the Stoxx 600 index up 1.4%.

Concerns linger about the sustainability of the artificial intelligence-fueled rally, prompting a rotation out of high-flying tech stocks. Bank of America’s equity strategist noted the strength of the U.S. economy and corporate earnings, suggesting a bullish outlook on cyclical companies. Waystar also saw an analyst initiation at overweight with a $30 price target, implying significant upside potential.

Memory stocks faced significant headwinds, with the Roundhill Memory ETF on pace for its worst week since inception. This divergence highlights a market grappling with sector rotation and valuation concerns, even as the broader economy shows resilience.