U.S. equities began the third quarter with a sharp sector rotation, as economically sensitive and small-cap shares outperformed the large-cap technology stocks that led gains in the first half of the year. By late morning in New York, the Dow Jones Industrial Average was up about 0.7% and the Dow Jones Transportation Average advanced more than 2%, while the Nasdaq 100 fell roughly 1%. The Russell 2000 index of smaller companies also traded higher, mirroring strength in the iShares Russell 2000 ETF. Traders cited profit-taking in last quarter’s technology winners and renewed interest in lagging groups such as retailers. The SPDR S&P Retail ETF rose around 2.3%, contrasting with the 0.8% drop in the tech-heavy QQQ ETF. Volatility gauges remained subdued, suggesting the moves reflected rotation rather than broader risk aversion.