Key Highlights

● The NYSE Composite stayed in positive territory as defensive blue chips offset the tech selloff.

● NYSE advancers narrowly beat decliners 1.01 to 1, while Nasdaq decliners led 2,766 to 2,022.

● The Dow Jones Industrial Average edged up 11.89 points to 52,867.98, a one-month high.

● Staples and health care closed at records as money rotated out of tech.

While the Nasdaq Composite sank 694 points on Thursday, October 22, the broader New York Stock Exchange finished higher. Its gain shrank through the afternoon, according to market data, but the NYSE Composite stayed in positive territory as investors rotated out of AI and chip stocks and into more traditional businesses.

The NYSE Composite tracks all common stocks listed on the Big Board, a universe that leans toward banks, industrials, consumer staples, energy, health care and utilities rather than the technology giants that dominate the Nasdaq.

A tale of two exchanges

The contrast between the two exchanges was stark. On the NYSE, advancing stocks narrowly beat decliners, 1.01 to 1, according to market data. On the Nasdaq, decliners outnumbered advancers 2,766 to 2,022. The share of NYSE volume flowing into rising stocks also improved markedly from Wednesday, while Nasdaq up-volume lagged.

Trading was heavy across the market. About 18.79 billion shares changed hands on US exchanges, above the 17.19 billion average of the prior 20 sessions.

The Nasdaq Composite closed at 26,008.86, its steepest drop since June 5, while the S&P 500 fell 93.74 points to 7,663.43. The Dow Jones Industrial Average, made up largely of NYSE-listed blue chips, edged up 11.89 points to 52,867.98, a one-month high.

The NYSE names that carried the day

Procter & Gamble (NYSE:PG) led a powerful rally in consumer staples, jumping to about $165.56 in its best day since March 2020 after beating earnings forecasts. Johnson & Johnson (NYSE:JNJ) rose to $267.61, Coca-Cola (NYSE:KO) to $95.34 and Verizon (NYSE:VZ) to $45.20 as staples and health care closed at records.

Financials also helped. Blackstone (NYSE:BX) surged to $118.75 after distributable earnings of $1.32 a share beat estimates and it signaled strong fourth-quarter performance fees. Lockheed Martin (NYSE:LMT) jumped after beating estimates and raising its full-year profit outlook, helped by a record backlog of $292 billion.

Rails rallied as well. Union Pacific (NYSE:UNP) climbed after record results, and Norfolk Southern (NYSE:NSC) advanced. Homebuilders, including Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI), jumped as the 10-year Treasury yield fell back below a closely watched threshold for the first time since September 22.

NYSE losers were tied to AI

The Big Board was not immune to the AI selloff. GE Vernova (NYSE:GEV) plunged to $827.42, one of the three worst S&P 500 stocks, on worries about financing for AI data centers. Vistra (NYSE:VST), Vertiv (NYSE:VRT), Eaton (NYSE:ETN) and Quanta Services (NYSE:PWR) also slid. Oracle (NYSE:ORCL), Arista Networks (NYSE:ANET), Dell (NYSE:DELL), Corning (NYSE:GLW) and Amphenol (NYSE:APH) fell, and Caterpillar (NYSE:CAT) dropped to $704.05.

Those losses helped explain why the NYSE's gain narrowed during the day. The exchange still logged 366 new 52-week lows against 173 new highs, a sign that the rotation was not universal.

Why the rotation happened

Investors were reacting to signs that AI spending is becoming costly. Meta Platforms (NASDAQ:META) set 2026 capital spending at $135 billion to $145 billion and posted negative free cash flow, and Lam Research (NASDAQ:LRCX) warned of supply constraints. "The only part of the market that is really suffering here is technology," one strategist said.

Another market commentator put it more bluntly: "People are running away from tech."

Friday's Earnings and the Fed Decision Ahead

American Express (NYSE:AXP) and Illinois Tool Works (NYSE:ITW) report on Friday, October 23, alongside S&P Global purchasing managers' surveys. Next week, the Federal Reserve announces its decision on October 28 and Caterpillar reports on October 29. Whether the rotation into Big Board stalwarts continues may depend on Treasury yields and on whether tech stabilizes.