Major United States indexes closed at record highs on Wednesday (Thursday AEST), with gains in healthcare and consumer stocks lifting the Dow Jones Industrial Average as investors paused the recent artificial intelligence-driven rally and monitored developments in Middle East peace negotiations.
The Dow Jones Industrial Average rose 182.6 points, or 0.4%, to finish at a record 50,644.3. The S&P 500 edged up 1.3 points, or 0.02%, to a fresh record close of 7,520.36, while the Nasdaq Composite also finished at record highs, gaining 18.6 points, or 0.1%, to 26,674.7.
Investor sentiment remained cautious as markets tracked negotiations between the United States and Iran. U.S. Secretary of State Marco Rubio said there had been “some progress” in discussions toward a potential agreement, telling reporters that “If there’s an agreement to be made, we want that to be made. I think there’s been some progress and some interest, and we’ll see over the next few hours and days whether progress can be made”.
The Dow extended its recent run of record highs, following similar milestones last Thursday and Friday, supported by a rotation into more defensive sectors, including healthcare and consumer staples.
Procter & Gamble climbed 3.2%, while UnitedHealth advanced 1.9%, helping underpin gains in the blue-chip index.
Banking stocks weakened during the session after JPMorgan Chase chief executive Jamie Dimon warned that the bank’s annual expenses could exceed previous estimates by about US$1 billion. JPMorgan shares fell 2.4%.
Technology stocks were mixed as investors took profits following a strong rally in semiconductor shares earlier in the week.
Intel declined 1.4%, while Marvell Technology dropped 4.6%. Qualcomm slid 6% after posting sharp gains in the previous session. NVIDIA, which has been central to the AI-driven rally on Wall Street, eased 1%.
Cloud security company Zscaler plunged 31.5% after forecasting fourth-quarter revenue below market expectations.
Among companies reporting earnings, Bath & Body Works jumped 9.7% after posting first-quarter sales and profit ahead of market expectations.
Abercrombie & Fitch also moved higher after reporting a stronger-than-expected quarterly profit.
Investors are now focused on the release of the personal consumption expenditures (PCE) index on Thursday, the Federal Reserve’s preferred inflation gauge.
On the bond markets, the benchmark 10-year Treasury yield slipped 0.2% to 4.483%, while the two-year Treasury yield edged up 0.1% to 4.039%.
