Dow falls 72 points, Nasdaq dips 0.9% as tech stocks pull US markets lower

US stocks opened lower on Thursday, extending a bout of market rotation that has recently powered the Dow Jones Industrial Average to record highs.

The Dow slipped 72 points, or 0.2%, in early trade after briefly touching an all-time high above 48,000 on Wednesday.

The S&P 500 fell 0.5%, while the tech-heavy Nasdaq Composite dropped 0.9%, as investors moved out of growth and technology stocks into more value-driven sectors.

Disney was among the biggest drags, sliding 8% after mixed fourth-quarter earnings disappointed Wall Street. The decline weighed on sentiment across the broader market, especially in media and entertainment names.

“The market has rebounded strongly from April’s lows, but the story now is one of broadening participation. Lower short-term rates are helping small caps and cyclical sectors lead the next leg higher,” Eric Teal, Chief Investment Officer at Comerica Wealth Management, told CNBC.

Adding to the mix, investors welcomed news that the six-week-long US government shutdown,  the longest in history, officially ended late Wednesday after President Donald Trump signed a funding bill passed by Congress.

The measure will keep federal operations running through January, though missing economic reports during the shutdown could cloud near-term data visibility.

Analysts expect some volatility ahead as markets digest delayed economic indicators and assess the strength of the recovery.

“There’s relief that the government is back, but plenty of uncertainty remains. Expect choppy trading until we get clarity on inflation and jobs numbers,” said Carol Schleif, Chief Market Strategist at BMO Private Wealth.