US Stock Movers: AI Momentum Fades as Market Winds Shift, Dow Gains About 0.5% with Most Components Rising

Stock News10-15 22:20

On Thursday, the Dow Jones Industrial Average rose about 0.5%, with components Coca-Cola (KO.US) and Visa (V.US) climbing more than 2%, both hitting record highs.

Walmart (WMT.US) and Nike (NKE.US) gained over 4%, while Home Depot (HD.US) advanced more than 3%. McDonald's (MCD.US), Johnson & Johnson (JNJ.US), and UnitedHealth (UNH.US) each rose more than 2%.

Analysts noted that after years of AI and momentum trades dominating the market, the "quality factor" investment strategy has made a strong comeback. Driven by repricing of interest rate expectations and slowing earnings growth, capital is rotating away from chasing growth toward emphasizing earnings quality and solid balance sheets.

The long-quality, short-momentum strategy has surged 55% year-to-date. The quality factor is negatively correlated with AI, and with momentum positioning highly crowded, the Buffett-style philosophy of holding quality assets is once again gaining recognition on Wall Street.

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