Tech Stocks Power Wall Street Rally as Job Market Signals Strength
Market News 04 JUN
On Tuesday, U.S. stock markets closed firmly higher, fueled by a surge in semiconductor stocks and unexpectedly strong labor market data. Despite macroeconomic headwinds and geopolitical tensions, investor sentiment remained upbeat, pushing major indexes to multi-month highs.
Indexes Reach New Highs
The S&P 500 climbed 0.58%, hitting a 3-month high. The Nasdaq 100 gained 0.79%, reaching a 3.25-month peak, while the Dow Jones Industrial Average advanced 0.51% to a 2-week high. Futures also showed strength: June E-mini S&P (ESM25) rose 0.58%, and E-mini Nasdaq (NQM25) added 0.81%.
A major catalyst was the latest JOLTS report, which showed job openings rose unexpectedly by 191,000 to 7.391 million in April—defying expectations of a decline and reinforcing confidence in the U.S. labor market.
Semiconductors Lead the Charge
The technology sector led the market, with a 1.5% gain, driven by chipmakers. ON Semiconductor (ON) surged over 11%, while Microchip Technology (MCHP), Micron (MU), NXP (NXPI), Broadcom (AVGO), Nvidia (NVDA), and AMD (AMD) rallied between 2% and 6%.
The rally spilled into broader markets, with the Russell 2000 small-cap index climbing 1.6%, supported by strength in banking and energy stocks.
Risks on the Horizon
Despite bullish momentum, several concerns tempered gains. The OECD cut its 2025 global GDP growth forecast from 3.1% to 2.9%, citing tariffs and uncertainty. Additionally, U.S. factory orders fell 3.7% in April, marking the sharpest drop in 15 months.
Comments from Atlanta Fed President Raphael Bostic also added caution. He stated there is "still a long way to go" in taming inflation and signaled no urgency in cutting interest rates—an outlook viewed as hawkish by markets.
Laggards and Losers
While tech led the rally, real estate investment trusts (REITs) retreated. Stocks like Mid-America (MAA), Welltower (WELL), AvalonBay (AVB), and Equity Residential (EQR) declined by 1–2%.
Among individual laggards:
Kenvue (KVUE) fell 5% after warning of soft seasonal demand
EchoStar (SATS) dropped 11% after delaying a $183M interest payment due to regulatory uncertainty
Corporate Standouts
Several companies beat expectations:
Dollar General (DG) +15% — strong Q1 sales and raised 2026 guidance
Ferguson (FERG) +17% — Q3 revenue of $7.62B beat estimates
Signet Jewelers (SIG) +12% — raised full-year EPS guidance
Pinterest (PINS) +3% — upgraded by JPMorgan
Lululemon (LULU) +3% — price target raised by Evercore
MoonLake (MLTX) +18% — takeover rumors involving Merck
Global Snapshot
Global markets closed mixed:
Europe: DAX +0.6%, FTSE +0.2%, CAC +0.3%
Asia: Hang Seng +1.5%, Shanghai Composite +0.4%, Nikkei 225 -0.1%
Commodities showed modest movement:
Crude oil rose to $63.41
Natural gas edged up to $3.72
Gold and silver declined, while copper was flat
All eyes are on this week’s key data:
Wednesday: ADP Employment and ISM Services PMI
Thursday: Weekly jobless claims
Friday: Nonfarm payrolls, unemployment rate, and average hourly earnings
Markets are also watching for fresh developments on trade tariffs and U.S.–China relations.