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Table of Monday's big tech stock moves showing Micron down 3.88%, SanDisk down 5.97% and Meta up 3.38%
Photo: TradingKey

Dow Rises 0.4% as Nasdaq Slips on Memory Chip Selloff

The Motley Fool2 min read6 sources

Why did the Dow rise 0.4% on Monday?

Dow Jones Industrial Average (^DJI) rose 0.4% to 51,850.55 on Monday as investors rotated into value stocks while a memory chip selloff pulled the Nasdaq down 0.44%.

Key numbers

Dow Jones close51,850.55+0.38%
S&P 500 close7,807.24-0.06%
Nasdaq Composite close27,245.90-0.44%
Micron shares-3.88%China memory competition fears
Brent crude (December)$106.65+1.84%
Dow vs Aug 5 high (not a record close)about 4.6% belowAug 5 close 54,349 (unconfirmed, not in cited sources)

What happened

Dow Jones Industrial Average (^DJI) rose 0.4% to 51,850.55 on Monday as investors rotated into value stocks while a memory chip selloff pulled the Nasdaq down 0.44%. The S&P 500 slipped 0.06% to 7,807.24, staying close to the record it set last week. Memory chip stocks fell after China's CXMT said it made progress on a design that could hold 30% to 50% more data, raising fears of tougher competition; Micron dropped 3.9%. Salesforce rose 2% after a Bank of America upgrade, which helped the Dow.

Why it matters

The Dow Jones Industrial Average (^DJI) rose while the Nasdaq fell, a sign some investors are moving money from fast-growing tech companies to steadier, established ones known as value stocks. Because big tech companies make up a large share of the S&P 500, drops in chip stocks can drag broad index funds even when many other shares rise. Bank earnings and inflation data this week may show whether the shift continues.

Who this affects

Marketmixed
Medium impact
Tech-heavy Nasdaq investors lose; value and energy shareholders gain.
Companybearish
Medium impact
Micron shareholders lose as China memory rivalry worries grow.
Competitorsbearish
Medium impact
SK Hynix and SanDisk fall alongside Micron; energy producers gain.
Industrybearish
Medium impact
Memory chip makers face fresh competition worries from China.

Dow Jones vs S&P 500, Nasdaq Composite

Dow Jones Industrial Average^DJI51,850.55+0.38%Third straight daily gain
S&P 500^GSPC7,807.24-0.06%Near record set last week
Nasdaq Composite^IXIC27,245.90-0.44%Four straight weekly gains before Monday

As of 2026-10-12

How we got here

  1. S&P 500 and Nasdaq Composite close at record highs on AI-led gains.

  2. China's CXMT reports progress on new memory chip design; memory stocks drop.

  3. Bank of America double-upgrades Salesforce to buy; shares rise 2%.

  4. Dow gains 195.60 points to 51,850.55, its third straight gain.

What to watch

  • JPMorgan, Citigroup, Wells Fargo and Goldman Sachs report third-quarter earnings.2026-10-13
  • September inflation (CPI) data, due this week, may sway investor mood.2026-10-14

Educational content only. Not investment advice.

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