The Dow Jones closed above 52,000 points in today's session for the first time, following Alphabet's entry into the index, completing a broader stock market rally.
The Dow gained 306.63 points, or 0.59%, closing at 52,182.74. The S&P 500 rose 1.18% to 7,440.43, while the Nasdaq gained 2.07% to 25,820.14.
Alphabet was among the biggest winners, rising nearly 5% on its first day of trading as a Dow member. Comcast shares also rose 4.4% after the company announced it would split its media and technology operations into two separate publicly traded companies, with the split expected to be completed in about a year.
The semiconductor sector also saw strong gains, with the VanEck Semiconductor ETF rising more than 3%, reversing earlier losses in the session. Stocks like Astera Labs, KLA, and Applied Materials rose about 16%, 12%, and 11%, respectively, leading the sector's recovery. The "Magnificent Seven" megacap index, which has largely underperformed this month, rose 2.6%.
These moves come as Wall Street enters a shortened trading week, with U.S. stock markets closed on Friday for Independence Day.
Joe Tigay, portfolio manager at Equity Armor Investments, said reduced liquidity due to the short week could lead to larger-than-usual swings, as portfolio managers make positioning adjustments that improve the performance picture they present to clients at the close of the second quarter.
Best quarterly performance for U.S. stocks in six years
"The recovery we're seeing is a welcome development for the bulls," said Matt Maley of Miller Tabak. "We continue to strongly believe that behavior in the tech sector will remain the key market driver."
However, according to him, even if technology doesn't need to continue outperforming strongly, it is crucial that it does not fall significantly due to its high weight in the S&P 500. Otherwise, retail investors could start moving toward cash, especially after discussions of "bubbles" over the past year.
The stock recovery has defied skeptics, despite war, the oil supply shock, and inflation concerns. From its March low, the U.S. index has recorded one of the fastest recoveries of the century, rising 20% from the March 30 low to the June 2 high—something that has only happened three other times since 2000.
"As the week begins, remember that it marks the end of the quarter and the first half," said JJ Kinahan of Cboe Global Markets. "That means we are likely to see waves of volatility as institutional managers rebalance their portfolios. Expect instability, but without excesses."
Geopolitics and oil
Meanwhile, the U.S. and Iran agreed on Sunday to cease hostilities and allow unhindered passage of commercial ships through the Strait of Hormuz, following a weekend of military exchanges that threatened to derail negotiations to end the conflict.
A U.S. official said technical talks would continue on all areas of the agreement, while both sides would temporarily cease attacks, allowing ships to move freely.
However, the U.S. struck Iranian military targets in retaliation for attacks in the Strait of Hormuz, with Donald Trump threatening a harsh response via a social media post.
Oil prices rose early in the week as markets assess whether the ceasefire will hold and limit risks to energy supply. Brent rose 1.6% to $73.15 a barrel, while U.S. WTI increased 2.2% to $70.75.
