US Stock Market Highlights: Dow jumps 400 points, S&P 500 closes flat to start new quarter as investors rotate out of tech

US Stock Market Highlights: The Dow Jones Industrial Average rose sharply on Tuesday (July 1), gaining 401 points or 0.9%, as investors rotated out of technology stocks and into health-care shares at the start of the second half of 2025. The S&P 500 hovered near the flatline, while the Nasdaq Composite fell 0.8%. The shift in sentiment came amid ongoing market focus on President Donald Trump’s proposed tax and spending package and comments from Federal Reserve Chair Jerome Powell. Tech stocks, which had led the rally in the previous quarter, took a back seat. Nvidia and Microsoft slipped, while healthcare names surged. Amgen and UnitedHealth gained more than 4% each, Merck rose over 3%, and Johnson & Johnson added nearly 2%, driving gains in the 30-stock Dow. The move marks a break from the second quarter’s tech-driven momentum. The Technology Select Sector SPDR Fund (XLK), which surged nearly 23% in Q2, fell about 1% to begin Q3.

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