Core Insights - The industrials sector has significantly benefited from the rotation out of technology stocks, with several defense and transportation stocks reaching new highs on Wednesday [1] Group 1 - The rotation out of tech has positively impacted the industrials sector [1] - Defense and transportation stocks have achieved new highs recently [1]

Group 1 - The software-led tech selloff continued, with the iShares Expanded Tech-Software Sector ETF falling for the seventh consecutive session, reaching levels last seen during the April 2025 tariff shock [1] - The broader tech sector experienced weakness, as the Nasdaq 100 declined by 2.2% following a 1.7% drop the previous day, indicating a significant rotation from long-duration growth stocks into energy and materials [1] - This rotation has been characterized as unusually violent, reflecting a shift in investor sentiment [1] Group 2 - The crypto markets mirrored the tech sector's risk-off sentiment, with Bitcoin dropping 2.5% to approximately $73,000, marking its lowest point since early November 2024 and erasing the gains from the post-Trump election rally [2] - Palantir Technologies Inc. saw a significant decline of over 12%, reversing part of a previous 6.9% increase [2]

Core Viewpoint - The rotation of investors into other sectors has contributed to the outperformance of the Dow industrials [1] Group 1 - Investors are shifting their focus from traditional sectors to others, which has positively impacted the performance of the Dow [1]