Wall Street Ends Higher, Dow Reaches New Closing High

Market Advances Amid Iran War Optimism, Broadcom Disappoints

The U.S. stock market advanced on June 4, with the blue-chip Dow Jones Industrial Average hitting a record closing high. The Dow surged 875.09 points, or 1.73%, to 51,562.16. The S&P 500 posted more muted gains, rising 31.14 points, or 0.41%, to 7,584.82. The Nasdaq Composite, however, ended essentially unchanged, losing 19.72 points, or 0.07%, to 26,834.26.

The market's advance was driven by progress toward ending the Iran war, which buoyed investor sentiment. The U.S. House of Representatives passed a measure on June 3 that would block President Donald Trump from continuing the war on Iran. Additionally, a U.S.-mediated ceasefire agreement between Israel and Lebanon bolstered optimism of a near-term resolution to the war. However, the truce was rejected by the pro-Iran Hezbollah, which said it would not withdraw troops from Lebanon.

Despite the overall market advance, chipmakers experienced a selloff, with Broadcom missing revenue expectations and sending its shares tumbling. The disappointing results from Broadcom led to a chip selloff that held the Nasdaq's gains in check. Marvell Technology gained, while Advanced Micro Devices, Micron Technology, and Qualcomm lost ground on the day.

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On the economic front, initial jobless claims unexpectedly rose 6.1%, and first-quarter labor costs and productivity were revised sharply lower. A report from Challenger, Gray and Christmas showed layoffs announced by U.S. corporations jumped 11% in May to 97,006. Nearly 40% of those layoffs were attributed to AI.

The healthcare sector got a boost from UnitedHealth after Bank of America raised its rating on the healthcare conglomerate's shares to "buy." The financial index's rebound followed a sharp selloff in the previous session due to revived concerns over private credit. Blackstone shares advanced after it became the latest asset manager to cap withdrawals from its flagship private credit fund following a rise in redemption requests.

Cybersecurity firm CrowdStrike slumped after reporting an increase in quarterly operating expenses. An investor roadshow for Elon Musk-led SpaceX began on June 4 ahead of its market debut on June 12. The company aims to raise $75 billion in a record IPO that would value it at $1.75 trillion.

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