NASDAQ100 Index and Dow JonesThe divergence of the industrial average index reflects the plate rotation between growth stocks and value stocks.

While the Dow hit another record high, the Nasdaq 100 index fell sharply to a level traditionally seen as a correction. It is also the first time since 1993 that the Dow has reached a record high, while the Nasdaq 100 index has fallen nearly 10% from its high.

"investors are more confident in the economic recovery and want to bet on improving fundamentals through large-cap stocks other than technology stocks and growth stocks with more reasonable valuations," said Mike Bailey, research director at FBB Capital Partners. "betting on improved fundamentals at a reasonable price may be the driving force for the Dow to rise to new highs."

This divergence shows that investors are turning to stocks that are closely related to the economic cycle. This has brought pain to technology stocks with high growth and high valuations. With bond market turmoil and 10-year Treasury yields approaching 1.6%, technology stocks have become less attractive.

"it feels like a change in attitude towards technology and growth stocks," Bailey said. "investors think that the prices of these COVID-19 winners are too high, and it is time to lower their valuations."