Dow Jones crossed the 50,000 mark for the first time on Friday, ushering in a new era in the indices. While energy stocks gained the most out of the rally, technology stocks were largely ignored. Software stocks lost nearly $1 trillion over the week and are in bearish territory.
The Dow Jones 50,000 milestone comes at a time when investors were seen chasing smaller and cheaper stocks over giants. “Now, they’re all chasing to buy cheaper companies, perhaps indiscriminately,” said Tim Murray, Capital Markets Strategist at T. Rowe Price.
The development indicates that traders are reconsidering their investments in technology stocks. The AI hyperscaling into billions without concrete results is worrying investors. A handful of experts are already rolling out the drums, calling AI a bubble. Companies on the downside being affected the most are Amazon, Google, and Microsoft, among others.
The Magnificent 7 did not participate in the Dow Jones to 50,000 rally on Friday. Most of them plunged in value, and Amazon bled 5.5% while Google’s Alphabet lost nearly 3% in the charts. Amazon is under heavy pressure as the company must deliver returns after investing $200 billion in AI capital spending.
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Dow Jones To 50,000: Energy, Materials, Consumer Staples Lead the Charts
The latest data from the London Stock Exchange Group (LSEG) and Deutsche Bank shows that investments in the energy sector have soared 21% since October 2025. Materials spiked 16%, and everyday consumer staples rose 15% during the same period. However, investments in technology stocks dipped more than 10%, making them have no role to play in the Dow Jones to 50,000 rally.
Thierry Wizman, global FX and rates strategist at Macquarie Group, said that investors’ doubts on technology stocks will only grow more skeptical moving forward. “People are going to have strong doubts and questions going forward,” he said. The market is now moving in a different direction, and the 50,000 Dow Jones stands as testament to it.
