[New York Stock Exchange] All Major Indexes Close Higher... Dow Hits Record High with Alphabet Addition

Alphabet Newly Added to Dow, Driving Index Higher
Major Semiconductor Stocks Surge, Fueling Rebound
International Oil Prices Close Higher
Lisa Cook Remains as Fed Governor, Treasury Market Stable

On the 29th (local time), all three major U.S. stock indices closed higher. Boosted by the recent inclusion of Alphabet, the Dow Jones Index surpassed the 52,000 mark for the first time in history, while the Nasdaq also posted gains of over 2%.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 52,182.74, up 306.63 points (0.59%) from the previous trading day. The S&P 500, which focuses on large-cap stocks, rose by 86.41 points (1.18%) to close at 7,440.43, while the tech-heavy Nasdaq gained 522.52 points (2.07%) to close at 20,582.14.

The market was led by gains in Alphabet and Comcast. In their first trading session after being included in the Dow, the two companies rose by 4.82% and 4.53%, respectively, drawing significant attention. The VanEck Semiconductor ETF also climbed 3.33%, reversing early losses. In addition, Astera Labs surged 16.39%, KLA jumped 11.97%, and Applied Materials soared 10.82%, leading the rebound.

Bloomberg analyzed that, following a wave of selling in artificial intelligence (AI)-related stocks, the rise in share prices of various tech giants helped lift the indices. Investors focused on expectations that the ongoing investment boom in the AI sector would continue to support strong corporate earnings.

However, Joe Tigay, portfolio manager at Equity Armor Investments, said in an interview with CNBC, "As the end of the quarter approaches, some adjustments may occur in the process of preparing financial statements," adding, "Since many large-cap stocks have already achieved substantial gains this year, many asset managers now prefer to lock in profits."

JJ Kinahan of Cboe Global Markets also noted, "We should remember that this week marks both the end of the quarter and the first half," adding, "This means that as institutional investors rebalance their portfolios, volatility is likely to increase."

The United States and Iran agreed to end the military clashes that continued over the weekend and allow merchant vessels to pass through the Strait of Hormuz. A U.S. government official told CNBC the previous day, "Technical discussions will continue across all areas of the memorandum of understanding (MOU)," and "both sides will suspend negotiations for the time being and allow the free movement of ships."

International oil prices closed higher. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery settled at $70.75 per barrel, up 2.2% from the previous session. On the ICE Futures Exchange, Brent crude for August delivery finished at $73.15 per barrel, up 1.6% from the previous session.

Haris Khurshid, Chief Investment Officer (CIO) at Karova Capital, told Bloomberg, "The market is increasingly accustomed to viewing these moves as tactical rather than structural," adding, "Unless there is a fundamental shift, traders are opting to reduce bets on both upside and downside."

The U.S. Treasury market remained stable after the U.S. Supreme Court allowed Federal Reserve Governor Lisa Cook to continue her term. Bloomberg assessed that this served as an opportunity to strengthen the central bank's independence from the White House.

Michael Reynolds of Glenmede said, "A Fed perceived as being influenced by political directives is likely to impose a persistent risk premium on U.S. dollar-based assets," adding, "Quietly but meaningfully, removing such extreme risks, however small the markets may have priced them in, is a positive factor for the outlook on long-term interest rate stability."

This content was produced with the assistance of AI translation services.