Major United States markets finished mixed on Wednesday (Thursday AEST), with the S&P 500 staying within striking distance of record highs, amid easing geopolitical concerns and continued strength in technology stocks.
The Dow Jones Industrial Average slipped 106.6 points, or 0.3%, to close at 42,982.4. The S&P 500 was flat at 6,092.2, while the Nasdaq Composite rose 61 points, or 0.3%, to 19,973.6.
Tech stocks led the gains, with NVIDIA jumping 4.3% after hitting a fresh record. Alphabet, Google’s parent company, advanced 2.3%, and chipmaker AMD rose 3.6%, lifting the Nasdaq.
The S&P 500 now sits less than 1% below its intraday record of 6,147.4 set on 19 February. It is nearing its all-time closing high of 6,144.2.
The Nasdaq also remains just over 1% off its December record.
For the week, the S&P 500 has gained 2.1%, buoyed by a relatively muted Iranian response to United States strikes over the weekend.
A ceasefire, announced by President Donald Trump, further calmed markets, alleviating concerns about disruptions to global crude supply.
Investor sentiment was bolstered by easing trade tensions and signs that the Middle East truce between Iran and Israel is holding, despite mutual accusations of ceasefire breaches shortly after its implementation.
In other geopolitical developments, NATO leaders commit to raising defence spending to 5% of GDP. Spain, however, opted for a 2.1% target, prompting President Trump to threaten double tariffs on Spanish goods.
Meanwhile, ANZ analysts commented in a note to clients: "Fed speakers continue to sing from different hymn sheets. Overnight, Boston Fed President Collins ([a] voting member) said that data are showing early signs of tariff-driven price increases, with most price changes likely to happen over [the] coming quarters.
"She characterised the economy as solid, noting that the labour market data point[s] to a modest deceleration. This backdrop supports her stance of adopting an ‘actively patient’ approach to monetary policy. She expects policy normalisation to resume later in the year."
On the economic front, new home sales fell sharply in May, declining 13.7% month-on-month to a 623,000 annual pace, well below economists' expectations of 690,000. It marked the slowest pace since October 2024.
On the bond market, the 10-year yield was down 0.1% to 4.291% and 2-year rates fell 1.1% to 3.781%.
