Wall Street saw a dramatic turnaround Thursday, June 4, as Dow Jones surged nearly 900 points to hit a record high. This rally followed a steep drop,with index clawing back from over 600-point plunge previous day.
Investor sentiment flipped,driven by a shift from semiconductor stocks to more traditional sectors. S&P 500 rebounded,erasing losses over 0.5% to close with gains. But Nasdaq 100 had a quieter day,ending down 0.5% after recovering from 1.6% fall,while Nasdaq Composite steadied after a 1% drop.
Tech sector felt heat mainly due to Broadcom's poor results,with stock tumbling 13% on grim outlook. This hit other chip players like ARM and Micron,who had seen big gains earlier this year,up 100%-200%. Yet,investors keen on AI trend bought into tech giants like Nvidia,Microsoft,and Alphabet,turning initial losses into gains of 2%-4%.
Worries about private investment cooled enthusiasm. Blackstone capped withdrawals from its $79 billion fund at 5%,but shares still rose over 7% Thursday. This despite PIMCO's Daniel Ivascyn warning of higher losses ahead for private investments .
Oil prices also influenced markets. Brent crude fell to around $95 after testing $98,partly due to reports of President Trump hesitating on military action against Iran. Ongoing U.S.-Iran tensions and Hezbollah's rejection of truce with Israel added to oil's volatility.
Looking forward, U.S. jobs report for May is key focus Friday. Set for 6 PM Indian Standard Time,report expected to show non-farm payrolls at about 89,000,unemployment rate steady at 4.3%. This amid tech sector job cuts at two-year highs,with rising jobless claims.
As Wall Street juggles these mixed signals,traditional vs. tech stock dynamics will likely steer trading in days ahead…
