The stock market posted mixed results on June 4 as the Dow Jones Industrial Average soared to a record high, while weakness in semiconductor stocks pulled the Nasdaq lower. The blue-chip Dow surged 874.86 points, or 1.73%, to close at 51,561.93, setting fresh intraday and closing records, according to Investopedia. The S&P 500 gained 30.63 points, or 0.41%, to 7,584.31, but the Nasdaq Composite fell 23.02 points, or 0.09%, to 26,830.96.
Healthcare and financial stocks led the Dow’s advance, with UnitedHealth Group jumping over 5% after Bank of America upgraded its rating to “buy.” Progress toward ending the Iran war also buoyed sentiment, as oil prices retreated nearly 3% after Israel and Lebanon announced they would renew their ceasefire agreement. West Texas Intermediate crude pulled back to $93.20 a barrel.
Chip stocks weighed heavily on the Nasdaq, with Broadcom shares tumbling 12.6% after missing revenue expectations, according to The Straits Times. Other semiconductor makers including ARM Holdings, Micron Technology, and Advanced Micro Devices also declined between 2.6% and 8%, raising questions about valuations in the AI-driven sector despite chip stocks posting a 92% yearly gain. “Investors are buying the dip,” said Paul Nolte, senior wealth adviser at Murphy & Sylvest, “but what they’ve yet to come to grips with is whether these valuations are legitimate.”
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The mixed market reflected broader economic uncertainty. Initial jobless claims rose 6.1%, and a report from Challenger, Gray and Christmas showed May corporate layoffs jumped 11%, with nearly 40% attributed to AI technology. The divergence between the Dow’s strength and the Nasdaq’s weakness underscored investor caution about concentration in technology despite enthusiasm over geopolitical developments.
Sources
- Investopedia — Dow record high at 51,561.93 (1.73% gain), S&P 500 at 7,584.31 (0.4% gain), Nasdaq at 26,830.96 (0.1% decline), Broadcom down 13%, healthcare and financial leadership
- The Straits Times — Dow 874.86 points (1.73%), S&P 500 at 7,584.31 (0.41%), Nasdaq at 26,830.96 (0.09% decline), Broadcom down 12.6%, chip sector losses, Iran ceasefire impact, jobless claims and layoffs data
