The S&P 500 (SPY) and Nasdaq (QQQ) reached record closing highs for the fourth consecutive session on Thursday, driven by a surge in technology stocks. The number of Americans filing new claims for unemployment benefits rose last week, while producer prices unexpectedly fell in May, raising hopes for a potential interest rate cut by the Federal Reserve. The central bank projected only one rate cut this year, a reduction from its March outlook of three quarter-point cuts. The S&P 500 technology sector jumped 1.4%, and the semiconductor index rose 1.5%, both closing at all-time highs.
Broadcom (AVGO) shares soared 12.3% after the chipmaker raised its revenue forecast for AI-related semiconductors and announced a 10-for-1 stock split. Nvidia (NVDA) rallied 3.5%, and Apple (AAPL) ended the day up 0.5%. "It's still very much a tech story," said Paul Nolte, senior wealth advisor at Murphy & Sylvest. He noted that broader market participation remains lacking, which could be a sign of an unhealthy market. The Dow Jones Industrial Average (DIA) fell 0.17%, while the S&P 500 gained 0.23% and the Nasdaq Composite rose 0.34%.
Market Overview:- S&P 500 and Nasdaq close at record highs for the fourth consecutive session.
- New unemployment claims rose; producer prices fell in May.
- Fed projected only one rate cut this year, down from three cuts in March.
- Broadcom shares jumped 12.3% on strong AI chip revenue forecast and stock split.
- Nvidia rallied 3.5%, Apple up 0.5%, Tesla gained 2.9%.
- Adobe shares surged 14% after beating Q2 revenue expectations.
- Investors monitor the broader market for signs of economic health.
- Focus remains on tech stocks as they continue to drive market gains.
- Potential Fed rate cuts and economic data will influence future market movements.
After the closing bell, Adobe (ADBE) shares jumped over 14% following better-than-expected second-quarter revenue. Despite this, the stock ended the regular session down 0.2%. On Wednesday, new data showed that a key measure of consumer prices remained unchanged in May for the first time in almost two years, causing some investors to worry about a possible rapid economic slowdown. The industrials sector fell 0.6%, and the small-cap Russell 2000 index (RUT) dropped 0.9%, indicating mixed sentiment across different market segments. Trading volume on U.S. exchanges was 10.14 billion shares, below the recent average of 12.49 billion.
Tesla (TSLA) shares gained 2.9% ahead of a shareholder vote on Elon Musk's $56 billion pay package. The vote reflects confidence in Musk's leadership despite the company's recent challenges. The approval also underscores the support Musk enjoys from Tesla's retail investor base. Shareholder approval for the compensation serves as both an endorsement of Musk's tenure and an acknowledgment that investors do not want to risk the company's future. The Delaware judge who ruled against the package criticized Tesla's board as "beholden" to him, saying the plan was proposed by a conflicted board with close personal and financial ties to its top executive.
