New York, June 4, 2026, 20:03 EDT
- Dow finished at a new high. S&P 500 rose, Nasdaq eased.
- Broadcom weighed on chip stocks. Lululemon fell after the company cut its outlook.
- All eyes turn to Friday’s jobs report, the next test for rates, yields, and tech stocks.
Dow closes at a fresh high as U.S. stocks mostly edge up
The Dow Jones Industrial Average jumped 874.86 points, or 1.73%, finishing at 51,561.93. The S&P 500 was up 30.63 points, or 0.41%, to 7,584.31. The Nasdaq Composite slipped 23.02 points, or 0.09%, ending at 26,830.96. Stocks ended mostly higher Thursday, but after-hours trading looked choppy as traders watched a chip drop, a Lululemon alert, and waited for a jobs report due Friday.
Healthcare and financials led the day’s action, with chip stocks missing out after driving much of the latest rally. Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, called Broadcom “about the only blemish” on the tape, but said investors were still staying with chips. Reuters
The U.S. Bureau of Labor Statistics is set to publish the May Employment Situation report at 8:30 a.m. ET Friday. That leaves the market’s late session open to just one more key data point before the weekend.
SPDR S&P 500 ETF Trust changed hands at $757.09 in late trading, with the SPDR Dow Jones Industrial Average ETF Trust at $516.70. The Invesco QQQ Trust was last seen at $740.61. ETFs trade like stocks and often serve as a fast gauge for major indexes after the close.
Broadcom was the main pain point in the AI trade. The chipmaker missed revenue estimates and its AI-chip forecast came in below some expectations. Reuters reported Nvidia and Marvell are upping competition. Direxion’s Ryan Lee said the drop proved the market “demands perfection” for these chip stocks to keep moving. Reuters
Broadcom is still seeing strong demand. The company reported AI chip revenue jumped 143% year-over-year to $10.8 billion last quarter. CEO Hock Tan said “the momentum continues,” with AI semiconductor sales on track to reach $16.0 billion this quarter. PR Newswire
Lululemon shares dropped 11% in after-hours trading after the company cut its full-year profit outlook and gave weak second-quarter earnings guidance. The numbers fell short of Wall Street forecasts. Meghan Frank, interim CEO and chief financial officer, said the yoga campaign didn’t bring the “halo effect” they wanted. Guggenheim Securities analyst Simeon Siegel described Lululemon as a “strong brand, but an overstretched one.” Investing.com
Other late moves were uneven. Rubrik gained following its latest quarter. Docusign slipped even after beating estimates. ServiceTitan surged after a smaller loss and higher revenue than expected.
Brent crude dropped 2.8% to $95.03 a barrel and the 10-year Treasury yield slipped to 4.47% from 4.49%, taking some pressure off stocks. Lower oil prices and bond yields supported the broader market.
Labor market shows signs of stalling. Initial jobless claims went up 13,000 to 225,000 for the week ended May 30. Economists polled by Reuters think Friday’s nonfarm payrolls will add 85,000 jobs, with unemployment steady at 4.3%. Oliver Allen at Pantheon Macroeconomics still calls it “low fire, low hire.” Reuters
Risks stay if jobs or wage numbers come in strong, putting yields up again and bringing talk of more Fed tightening. Kansas City Fed President Jeffrey Schmid said the decision now is patience or another rate hike, and asked if it’s time to lift rates “a quarter or two” to hit inflation. That could squeeze expensive tech stocks harder. Reuters
