Tech Stocks Propel Nasdaq to New Highs Amid Economic Concerns

The S&P 500 and Nasdaq reached record highs for the fourth consecutive session due to a technology stock rally. Increased unemployment claims and falling producer prices prompted hopes for a Federal Reserve interest rate cut. The tech sector outperformed, with significant gains in semiconductor stocks like Broadcom and Nvidia. Economic concerns remain, however, as other sectors showed weaker performance.

The S&P 500 and Nasdaq registered record closing highs for a fourth session in a row on Thursday as technology shares extended their recent rally. The number of Americans filing new claims for unemployment benefits increased last week and another report showed producer prices unexpectedly fell in May, helping to keep alive hopes that an interest rate cut by the Federal Reserve may be on the horizon.

The Fed on Wednesday projected only one rate cut this year, while its outlook in March included three quarter-percentage-point reductions. The S&P 500 technology sector jumped 1.4% and an index of semiconductors rose 1.5%, both reaching all-time closing highs.

Shares of Broadcom jumped 12.3% after the chipmaker raised its forecast for revenue from semiconductors used in artificial intelligence technology. It also announced a 10-for-1 forward stock split. Shares of Nvidia rallied 3.5%, and Apple ended up 0.5%.

"It's still very much a tech story" in stocks, said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest in Elmhurst, Illinois. "When you look at the broader market, you're not seeing the participation you would like to see from a healthier market." The Dow Jones Industrial Average fell 65.11 points, or 0.17%, to 38,647.1, the S&P 500 gained 12.71 points, or 0.23%, at 5,433.74 and the Nasdaq Composite rose 59.12 points, or 0.34%, to 17,667.56.

After the closing bell, shares of Adobe jumped more than 14% after the Photoshop maker beat Wall Street expectations for second-quarter revenue. The stock ended the regular session down 0.2%. On Wednesday, new data showed a gauge of consumer prices was unchanged in May for the first time in almost two years.

Some investors are wondering whether the economy may be slowing too quickly. The economically sensitive industrials sector fell 0.6% and the small-cap Russell 2000 index dropped 0.9%.

Tesla shares gained 2.9%. Tesla shareholders

were set to approve Elon Musk's $56 billion pay package. Volume on U.S. exchanges was 10.14 billion shares, compared with the 12.49 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancers on the NYSE by a 1.58-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favored decliners. The S&P 500 posted 15 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 53 new highs and 129 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)