Power stocks fall 9%-14% despite Dow rally
SPY•U.S. stocks diverged sharply on Nov. 4: power shares fell 9%-14%, while health insurers and hospitals gained 10%-13%. The Dow rose 3.03% to 53,356, and the Nasdaq 100 had entered its third correction of the year.
1. Sector moves diverged
Power shares fell 9%-14% on Nov. 4, while health insurers and hospitals gained 10%-13%. The Dow rose 3.03% to 53,356, its strongest session since April 2025, following Democrats' congressional victory.
2. Technology concerns persist
The Nasdaq 100 had closed more than 10% below its Oct. 6 peak on Monday, entering its third correction this year. The AI selloff reflected concerns over whether roughly $900 billion in worldwide AI spending this year would generate adequate returns.
3. Trading approach
The analysis favored predetermined buying and trimming levels over market predictions, citing sharply different outcomes across sectors.
