The Dow Jones Industrial Average surged 875 points to a record close on Thursday, posting its largest single-day point gain in months as a powerful rally in healthcare and financial stocks overwhelmed a tech-sector pullback led by Broadcom.

The blue-chip index settled at 42,318.67, eclipsing its previous all-time high and marking a dramatic reversal from the cautious tone that had prevailed earlier in the week. The S&P 500 rose 1.8%, while the Nasdaq Composite eked out a modest gain of 0.3%, held back by Broadcom’s steep decline following disappointing earnings guidance.

Healthcare stocks were the standout performers, with the sector surging more than 4%. UnitedHealth Group jumped 6.2%, Pfizer gained 5.8%, and Johnson & Johnson climbed 4.9%, buoyed by positive regulatory developments and a wave of analyst upgrades. Financials also posted robust gains, as bank stocks rode higher interest rate expectations and improving loan demand. JPMorgan Chase added 3.7%, Goldman Sachs rose 4.1%, and Bank of America gained 3.9%.

Broadcom emerged as the day’s biggest drag on the tech sector, sliding 8.3% after the chipmaker issued weaker-than-expected forward guidance tied to enterprise spending uncertainty. However, the broader market shrugged off the disappointment, with investors rotating aggressively into sectors viewed as more defensive or rate-sensitive.

“Today’s rally is a textbook example of sector rotation at work,” said Sarah Chen, markets correspondent. “Healthcare and financials have been gaining momentum, and today they delivered a decisive breakout that more than compensated for tech weakness.”

The Dow’s 875-point gain was the largest single-day point increase since November 2024 and pushed the index more than 8% higher for the year. Analysts pointed to easing inflation data and steady consumer spending as key tailwinds supporting the broader market advance.

Treasury yields edged higher, with the 10-year note rising to 4.32%, helping bank stocks and reinforcing confidence in the economic outlook. The rally was broad-based, with advancers outpacing decliners by a roughly 3-to-1 margin on the New York Stock Exchange.

Market participants now turn their attention to the Labor Department’s monthly jobs report due Friday, which could provide further direction on the Federal Reserve’s policy path. For now, the message from Wall Street was clear: the bull market still has room to run.