Two of the three benchmark indices on Wall Street ended higher, with one ending at a record high and the other registering a record closing high, as hopes of a more dovish Federal Reserve in 2026 overshadowed concerns surrounding the AI trade, which at one point, had pushed futures lower by as much as 400 points.

The Dow Jones ended 650 points higher on Thursday to close above the 48,700 mark, while the S&P 500 closed above the 6,900 mark for the first time. The index is now just 20 points away from its intraday record of 6,920. The tech-heavy Nasdaq, staged a 300-point recovery from the lows of the day, but ended below the flat line.

Thursday's session marked a rotation out of big tech names, most of which, barring Microsoft and Meta, ended lower, into old economy and defensive names su

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