On Thursday, U.S. stock markets posted strong gains, driven by tech sector momentum and rising hopes for a dovish shift in monetary policy. The S&P 500 reached a four-month high, the Dow Jones hit its highest level in nearly four months, and the Nasdaq 100 set a new all-time record. Semiconductor stocks were at the forefront, significantly boosting broader market sentiment.
Key Drivers Behind the Rally
Several factors contributed to investor optimism. Positive earnings from Micron and strong performance among chipmakers helped set the tone for the day. Additionally, a decline in Treasury yields provided support to equities: the 10-year yield dropped to a two-month low, following reports that President Trump may be considering replacing Fed Chair Jerome Powell earlier than expected. This fueled speculation that the central bank may adopt a more dovish stance sooner than markets anticipated.
Expectations for rate cuts were also reinforced by mixed economic data. While initial jobless claims fell to 236,000, continuing claims rose to 1.974 million — a 3.5-year high. Meanwhile, first-quarter U.S. GDP was unexpectedly revised down to -0.5% annualized, below the anticipated -0.2%. Personal consumption was also downgraded.
However, better-than-expected data in other areas softened the blow. Core capital goods orders (excluding defense and aircraft) surged by 1.7% in May — the strongest monthly increase in four months. Pending home sales rose 1.8%, far exceeding the 0.1% forecast.
Corporate Sector: Winners and Losers
Fueled by ongoing enthusiasm for artificial intelligence and strong chip demand, semiconductor stocks led the day. Marvell Technology surged more than 5%, Broadcom rose over 2%, and Qualcomm, Intel, Analog Devices, and KLA Corporation all posted gains above 1%.
Not all tech names shared the rally, however. Unity Software dropped over 3% after Bank of America initiated coverage with an “underperform” rating. Other notable decliners included Equinix (down 9%), Trade Desk, and Kratos Defense & Security Solutions.
The healthcare sector also saw notable gains, with Cigna, CVS Health, and HCA Healthcare closing in positive territory. McCormick rose more than 5% after reporting strong quarterly results. Mining stocks such as Southern Copper and Freeport McMoRan surged more than 6–7% as copper prices climbed.
Investors responded to corporate developments across other sectors as well. AeroVironment soared 29% on impressive quarterly earnings. HB Fuller rose around 10% in premarket trading after issuing guidance above Wall Street expectations. Altimmune, on the other hand, plunged 64% following underwhelming clinical trial results.
Global Context and Market Outlook
International markets closed mixed. The Euro Stoxx 50 dipped slightly, Japan’s Nikkei 225 gained 1.65%, while China’s Shanghai Composite edged lower. Weak consumer sentiment data from Germany and ongoing global trade concerns added to investor caution.
Looking ahead, investors will closely monitor upcoming remarks from Federal Reserve officials and key data releases. On Friday, markets expect reports on personal income and spending for May, as well as the Fed’s preferred inflation metric — the core PCE price index. The University of Michigan’s final June consumer sentiment reading will also be in focus.
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