The New York Stock Exchange closed mixed on June 4, with the Dow Jones Industrial Average reaching a record high, while semiconductor stocks faced pressure from profit-taking.
The Dow rose 874.86 points, or 1.7%, to finish at 51,561.93. The Standard & Poor's 500 index gained 30.63 points, or 0.4%, closing at 7,584.31. In contrast, the tech-heavy Nasdaq composite fell 23.02 points, or 0.1%, to end at 26,830.96.
Market activity shifted focus from large tech stocks to financial and healthcare sectors. A nearly 3% drop in international oil prices and declining U.S. Treasury yields helped restore some investor confidence in risk assets. Financial and healthcare stocks boosted the indices, while the Russell 2000 index, which tracks smaller companies, rose 1.4%.
However, AI semiconductor stocks faced profit-taking pressure. Broadcom's shares plummeted over 12% after the company reported second-quarter revenues that fell short of market expectations and did not raise its AI revenue forecast for 2027. This decline affected major semiconductor stocks like AMD, Micron, and Qualcomm, which had recently seen rapid price increases due to AI optimism. Stocks that failed to meet performance expectations faced significant selling pressure.
Macro indicators showed signs of economic slowdown. The number of new unemployment claims in the U.S. rose to 225,000, the highest level in four months. Additionally, the first-quarter non-farm productivity growth rate was revised down from 0.8% to 0.3%. However, the slowdown in the labor market was interpreted more as a signal for the Federal Reserve's interest rate trajectory rather than an immediate warning of a severe economic downturn.
Expectations of easing tensions in the Middle East supported the market. Reports of a ceasefire agreement between Israel and Lebanon led Brent crude to drop to $95.03 per barrel, while West Texas Intermediate (WTI) fell to $93.04. The decline in oil prices contributed to easing inflationary pressures.
Overall, the trading session was far from a broad rally in risk assets. While the Dow and S&P 500 gained, the Nasdaq was weighed down by weakness in semiconductor stocks. The market now looks ahead to the employment report and the Federal Reserve's interest rate decisions, as well as the performance expectations for AI-related stocks.
* This article has been translated by AI.
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