The market is quietly withdrawing from technology and AI stocks.

The Dow Jones Industrial Average just hit a new all-time high, while the Nasdaq fell 3.13% today.

The Information Technology sector fell 2.37%. Meanwhile, the Healthcare sector rose 2.31%, the Consumer Staples sector rose 2.39%, the Utilities sector rose 1.83%, and the Financials sector rose 1.13%.

Three factors are driving this rotation.

First, investors are turning to sectors with stable earnings and dividends, rather than those built on promises of future growth.

Second, major banks and hedge funds have been warning about AI valuations for weeks.

China's top hedge fund called it a "super bubble." The International Monetary Fund pointed out excessive speculation. Michael Burry opened short positions on NVIDIA, SOXX, and Applied Materials.

Third, and most importantly, the market is beginning to question the return on AI spending.

The five major super cloud service providers are spending $741 billion this year on AI infrastructure alone. But the resulting revenue is still insufficient to justify this level of investment.

The market sees capital expenditure going in, but doesn't see corresponding output coming out.

The Dow hitting a new high while the Nasdaq plummets is exactly what the market is telling you it believes in right now.

Certainty over growth, earnings over promises.