The New York Stock Exchange closed higher, buoyed by strong performance in technology stocks. Despite rising tensions between the U.S. and Iran that pushed international oil prices up more than 4%, optimism surrounding Nvidia's artificial intelligence (AI) developments lifted market indices. The S&P 500 and Nasdaq both reached new all-time highs.
On June 1, the Dow Jones Industrial Average rose by 46.42 points (0.09%) to close at 51,078.88. The S&P 500 gained 19.90 points (0.26%) to finish at 7,599.96, while the Nasdaq increased by 114.19 points (0.42%) to close at 27,086.81.
Technology stocks led the gains, with Nvidia surging 6.3% after unveiling a new chip designed to integrate AI capabilities into personal computers. Microsoft also saw a 2.3% increase. The excitement surrounding Nvidia and Microsoft contributed to the upward momentum in large tech stocks.
Semiconductor stocks had mixed results. Micron Technology rose 6.6%, surpassing $1,000 for the first time. The Philadelphia Semiconductor Index increased by 1.1%. However, Qualcomm fell by 8.8%, and Intel dropped by 4.7%. While demand for AI remains strong, the performance varied significantly among individual stocks.
The upward trend did not extend across the entire market. Among the 11 sectors of the S&P 500, only technology and energy stocks posted gains. Airline stocks and other sectors heavily impacted by fuel costs struggled due to the surge in oil prices. According to Reuters, declining stocks outnumbered advancing stocks on the New York Stock Exchange.
Geopolitical tensions in the Middle East have resurfaced as a concern. Amid discussions about the sustainability of negotiations between the U.S. and Iran, Iranian officials recently mentioned a halt to indirect talks with the U.S. following recent clashes. As geopolitical tensions escalated, Brent crude closed at $94.98 per barrel, up 4.24%.
The rise in oil prices also affected the bond market. The yield on the U.S. 10-year Treasury note approached 4.52% during the day but later settled around 4.46%. As oil prices retreated from their intraday highs, some pressure on interest rates eased. However, concerns remain that rising energy prices could reignite inflationary pressures.
Economic indicators have somewhat alleviated fears of a slowdown. U.S. manufacturing activity has expanded for five consecutive months, with May's figures reaching a four-year high. Investors are expected to assess AI investment demand and interest rate trajectories based on upcoming employment data and Broadcom's earnings report this week.
* This article has been translated by AI.
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