Value Stocks Step Into the Spotlight

DoTrading
11-12

Market Rotation Shakes Up the Rally

Wall Street staged a strong rebound Tuesday, but the leadership looked very different from what investors have come to expect this year…

The Dow Jones Industrial Average surged 559 points (+1.2%), marking its 16th record close of 2025, while the $S&P 500(.SPX)$ added 0.2%. The $NASDAQ(.IXIC)$ , weighed down by tech and AI shares, slipped 0.3%.

Only four Dow components, $NVIDIA(NVDA)$ , Cisco Systems, Caterpillar, and JPMorgan Chase ended the day lower. Broader participation was solid, with most S&P 500 constituents finishing in positive territory, but the tech-heavy Nasdaq lagged as investors rotated out of high-growth names and into value, dividend, and low-volatility stocks.

Whether this is a one-day phenomenon or the start of a broader realignment will be the key question in coming sessions.

Active Stocks

An AI Temperature Check

AI-related stocks, which have powered much of 2025’s rally, took a breather. After a sharp run-up Monday, semiconductors and AI infrastructure names tumbled on Tuesday amid fresh concerns about valuation and supply chain constraints.

$CoreWeave, Inc.(CRWV)$ CoreWeave shares dropped 16%, despite reporting a smaller-than-expected loss. CEO Michael Intrator told that data center buildout delays stem from “extreme pressures on the supply chain”, from concrete shortages to electrical transformer availability, but said demand for AI computing power remains higher than it was three months ago.

Elsewhere, the iShares Semiconductor ETF fell 2.3%, and Nvidia slid nearly 3% after SoftBank Group disclosed it exited its $5.83 billion stake in October. SoftBank remains bullish on AI overall, having increased investments in OpenAI and related infrastructure.

Even $Advanced Micro Devices(AMD)$ (AMD) saw volatility. Shares declined 2.7% during regular trading despite CEO Lisa Su’s upbeat growth outlook, forecasting 35%+ annual revenue growth over the next three to five years. But optimism returned after hours, when CFO Jean Hu projected operating margins to expand from 24% to over 35%, implying a “clear path” to $20+ earnings per share within five years. AMD stock rebounded 4.1% in late trading.

The Road Ahead

Earnings season continues, with a focus on balance-sheet strength and forward guidance as investors reassess growth assumptions amid sector rotation.

Wednesday’s lineup:

  • Cisco Systems

  • Flutter Entertainment

  • Tencent Music Entertainment

  • Circle Internet Group

  • On Holding

  • GlobalFoundries

The Bottom Line

Tuesday’s session was a reminder that even in a market dominated by mega-cap tech, rotation is healthy. Value and defensive names finally found their footing, hinting at broader participation and potentially more sustainable market gains.

For now, investors are watching whether the “AI pause” turns into a deeper correction, or simply the breather the market needs before the next leg higher…

If you found this summary helpful, be sure to like and subscribe to stay informed on the economic trends shaping markets.

@TigerStars @Tiger_SG @TigerCommunity @Tiger_comments @Daily_Discussion @TigerEvents

This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment