NEW YORK, June 25, 2026, 11:03 (EDT)
- The Dow Jones Industrial Average (INDEXDJX:.DJI) climbed 763.79 points, or 1.47%, based on MarketWatch/FactSet delayed figures, while the S&P 500 (INDEXSP:.INX) added 0.40%. The Nasdaq Composite (INDEXNASDAQ:.IXIC) slipped 0.34%.
- Goldman Sachs Group Inc. (NYSE:GS), Caterpillar Inc. (NYSE:CAT) and Honeywell International Inc. (NASDAQ:HON) added the most to the Dow on the day, while Apple Inc. (NASDAQ:AAPL) led the Dow losers.
- PCE inflation in the U.S. increased 4.1% in May, but traders lowered chances of a July Fed rate hike to around 30%. Weekly jobless claims dropped to 215,000.
- Alphabet Inc. (NASDAQ:GOOGL) is set to join the Dow, taking Verizon Communications Inc.’s (NYSE:VZ) spot before the open on June 29.
Dow jumps more than 700 points as industrials and banks surge, Nasdaq lags
Late Thursday morning, the Dow rallied 763.79 points to 52,612.69 as tracked by MarketWatch/FactSet. The move left the S&P 500 up 29.46 points. But the Nasdaq fell 86.98 points, weighed down by Apple, Microsoft Corp. (NASDAQ:MSFT), Nvidia Corp. (NASDAQ:NVDA) and Amazon.com Inc. (NASDAQ:AMZN).
No clear tech bounce for the tape. MarketWatch figures each $1 move in a Dow component moves the index by 6.16 points. The top five names on the upside—Caterpillar, Goldman Sachs, Honeywell, UnitedHealth Group Inc. (NYSE:UNH), and American Express Co. (NYSE:AXP)—added around 666 points to the Dow. But Apple, Microsoft, Nvidia, and Amazon took off about 184 points.
That point is key for investors following the Dow via futures or funds, since the index is price weighted. S&P Dow Jones Indices said this week Verizon makes up only about half a percentage point in the Dow because its share price is low. That means low-priced stocks don’t move the gauge much. Alphabet coming in next week will shift the mix again.
S&P 500 breadth looked stronger than the Nasdaq. Reuters said eight of 11 S&P 500 sectors moved higher, with industrials up 2%. On the NYSE, advancers topped decliners by 1.86 to 1. The Nasdaq advance-decline was nearly even at 1.01 to 1.
Micron Technology Inc. (NASDAQ:MU) and Qualcomm Inc. (NASDAQ:QCOM) held up the AI trade. Micron got $22 billion in commitments from its customers for memory supply. CEO Sanjay Mehrotra expects “tight conditions to persist beyond calendar 2027.” Daniel Newman, CEO at Futurum Group, said memory is set to “continue to command premium pricing.” Reuters
Selective buying weighed on tech. Apple dropped 4.8%. Nvidia, Microsoft and Alphabet lost between 1.5% and 2.7%, according to Reuters. Micron jumped 10% and Qualcomm added 3%, but tech as a whole retreated 1%.
Rates were in focus. “We believe inflation remains elevated for now,” Michele Morganti, senior equity strategist at Generali Investments, said. Morganti flagged a “risk” that the Fed could still hike rates later this year, though he said stocks may be able to handle a more hawkish Fed. Reuters
The Commerce Department’s PCE index climbed 4.1% for the year through May, the biggest jump since April 2023. Core PCE was up 3.4%. But traders trimmed bets on a July Fed hike to about a 30% chance, from almost 40% earlier. Odds for September stayed high at about 80%. Martin Beck, chief economist at Public Policy Holding Company (LON:PPHC), said the data wasn’t “a clear sign” of higher price pressure and the Fed could “stay patient rather than panic.” Reuters
Jobless claims dropped by 12,000 to 215,000 for the week ended June 20, beating the 225,000 estimate from Reuters. But continuing claims moved higher, ticking up to 1.821 million. Bulls found some support in the labor data.
Bond investors can’t agree on the Fed’s path. “The market is way too aggressive in pricing rate hikes,” Byron Anderson, head of fixed income at Laffer Tengler Investments, said. Chip Hughey, fixed-income managing director at Truist Wealth, pointed to the curve, saying it showed Fed Chair Kevin Warsh’s “firm commitment” to drive inflation to 2%. Reuters
The Dow closed up 182.06 points, or 0.35%, at 51,848.90 on Wednesday. The S&P 500 slipped 0.10%, and the Nasdaq dropped 0.43%, Reuters said.
