The U.S. stock market closed higher on the first trading day after the Independence Day holiday, driven by a rebound in artificial intelligence (AI) related semiconductor stocks. The Dow Jones Industrial Average surpassed the 53,000 mark for the first time in history.
On July 6, the Dow closed at 53,055.91, up 0.29% from the previous session. The Standard & Poor's (S&P) 500 index rose 0.72% to 7,537.43, while the Nasdaq composite gained 1.12% to finish at 26,121.16.
The day's gains were led by semiconductor stocks. Broadcom's shares increased by 3.7% after the company announced it had extended its custom semiconductor development and supply agreement with Apple until 2031. The Philadelphia Semiconductor Index also rose 2.2%, recovering some of the losses from the previous two trading days. The S&P 500 information technology sector index climbed 1.3%.
Expectations for demand in AI semiconductors further bolstered investor sentiment. Reuters reported that SK Hynix is set to debut on Nasdaq this week, with strong investment demand for AI-related semiconductor stocks still evident. The market is keenly watching the upcoming second-quarter earnings reports, which are expected to confirm the impact of AI investments.
However, the upward trend did not extend across the entire market. Within the S&P 500, the number of declining stocks outnumbered those that rose. While large tech and semiconductor stocks drove the index higher, other sectors lagged behind.
On an individual basis, Microsoft shares fell about 1% after the company announced it would cut approximately 4,800 jobs, or about 2.1% of its workforce. O'Reilly Automotive dropped 6.7% following reports of a proposal to acquire Genuine Parts' automotive parts business.
Economic indicators showed mixed results. The Institute for Supply Management (ISM) reported that the June services purchasing managers' index (PMI) fell to 54.0 from 54.5 the previous month. Although the index remains above the baseline of 50, indicating expansion, the pace of growth in the services sector has slowed somewhat.
Uncertainty regarding interest rates also persists. Last week's employment data came in weaker than expected, reducing the likelihood of a rate hike at the July Federal Open Market Committee (FOMC) meeting. Investors are looking to the FOMC minutes set to be released on July 8 and major corporate earnings to gauge the Federal Reserve's policy direction and the sustainability of the AI rally.
* This article has been translated by AI.
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