The Dow Jones Industrial Average climbed to a fresh intraday record on Thursday, even as the Nasdaq Composite retreated amid a selloff in major technology stocks. The divergence highlights a broadening market rotation away from Big Tech toward sectors such as industrials, healthcare, and financials.
Market Performance Overview
The Dow rose 72 points, or 0.1%, to an all-time intraday high, supported by strong gains in Caterpillar (up 5%), JPMorgan Chase (up over 2%), and Johnson & Johnson (up more than 1%). The S&P 500 hovered near the flatline, while the Nasdaq declined 0.46%, pressured by weakness in Apple, Microsoft, Alphabet, and Meta Platforms.
Big Tech Under Pressure
Apple fell 5% after announcing price increases on MacBook and iPad products, citing rising semiconductor costs. Microsoft also declined nearly 4% after raising prices on Xbox consoles. Alphabet and Meta Platforms each dropped about 1% as investors weighed potential margin pressure from higher chip costs. These moves reflect growing concerns that rising semiconductor prices could ripple through the broader tech ecosystem.
Inflation Data and Fed Outlook
Fresh economic data added to market sentiment. May's personal consumption expenditures (PCE) index showed headline inflation rising 0.4% month-over-month and 4.1% year-over-year, both in line with expectations. Core PCE increased 0.3% monthly and 3.4% annually, also matching forecasts. Although core inflation reached its highest level since October 2023, investors took some comfort that the figures did not exceed expectations amid rising energy costs linked to geopolitical tensions.
Treasury yields edged lower, with the benchmark 10-year yield slipping more than 1 basis point to 4.384%. According to LSEG data, traders continue to anticipate at least one interest rate increase before year-end.
Geopolitical Tensions Lift Crude Oil
West Texas Intermediate crude moved higher after four consecutive sessions of losses, as geopolitical tensions in the Strait of Hormuz raised supply concerns. A vessel was reportedly struck by an unidentified projectile in the strategic waterway, shortly after several commercial ships reversed course while attempting to pass through. The developments threaten stability in a key energy chokepoint, complicating recent signs of a potential reopening.
Semiconductor Stocks Rally Despite Broader Tech Weakness
Despite the selloff in Big Tech, semiconductor stocks provided support to parts of the market. Micron surged 14% after reporting strong fiscal third-quarter results and raising forecasts. Qualcomm gained 6% after increasing its non-handset revenue outlook for fiscal 2029. Other chip-related names also advanced, including Sandisk, Western Digital, KLA, and Applied Materials. The Philadelphia Semiconductor Index rose 3.59% and is on track for its strongest quarter on record, according to LSEG data.
For more on the broader market dynamics, see S&P 500 Nears Record: Earnings, CPI, Iran Tensions, AI Jitters in Focus and Dow Gains 70 Points as SK Hynix's $26.5B Nasdaq Listing and Iran Tensions Drive Caution.
Other Notable Movers
Bio-Techne Corp rose after Germany's Merck KGaA agreed to acquire the biotech company in an all-cash deal valued at $73 per share, implying a total enterprise value of approximately $11.3 billion. Six of the 11 major S&P 500 sectors ended higher, led by industrials, which rose 1.9%. Consumer discretionary and consumer staples lagged.
For a look at under-the-radar opportunities, see 5 Under-the-Radar Stocks Analysts Favor for Summer 2026 as Market Broadens.
This article is for informational purposes only and does not constitute financial advice.
