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The S&P 500 and Nasdaq set record closing highs for a fourth straight day on Thursday as technology shares maintained their climb.
Last week, new unemployment claims rose and producer prices unexpectedly declined in May, bolstering chances of a September Federal Reserve rate cut.
After three quarter-percentage-point cuts in March, the Fed forecast only one rate cut this year on Wednesday.
The S&P 500 technology sector and semiconductor index (.SOX) climbed strongly.
After Broadcom boosted its projection for income from artificial intelligence semiconductors, shares rose to a record high. A 10-for-1 forward stock split was also announced.
Nvidia (NVDA.O) shares also rose.
“We’re seeing a little bit more of a decline in yields, but it’s still very much a tech story” in stocks, said Murphy & Sylvest senior wealth advisor and market strategist Paul Nolte in Elmhurst, Illinois. “When you look at the broader market, you’re not seeing the participation you would like to see from a healthier
According to early statistics, the S&P 500 gained 11.94 points, or 0.22%, to 5,432.97 and the Nasdaq Composite gained 59.12 points, or 0.34%, to 17,667.56. The Dow slid 70.48 points, or 0.19%, to 38,639.92.
On Thursday, the 10-year Treasury note yield fell.
Investors worry about a rapid economic slowdown.
industry index and small-cap Russell 2000 index dropped.
UBS Global Research anticipates the Fed dropping rates in December instead of September, while Goldman Sachs and Morgan Stanley expect September.
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