Alphabet's index debut lifts Dow to all-time high; Tesla, SpaceX also surge

US-Iran talks revival boosts sentiment; semiconductor stocks rebound across the board

Fed independence ruling steadies Treasury yields; oil prices end higher

A trader works on the floor of the New York Stock Exchange on Monday (local time). [Yonhap]
A trader works on the floor of the New York Stock Exchange on Monday (local time). [Yonhap]

US stocks closed higher across the board Monday, driven by a broad rebound in technology shares. Easing geopolitical tensions following the resumption of US-Iran peace negotiations and renewed buying in AI-related large-cap tech and semiconductor stocks pushed the Nasdaq up more than 2 percent. The Dow Jones Industrial Average crossed the 52,000 mark on a closing basis for the first time, boosted by Alphabet's addition to the index.

The Dow rose 306.63 points, or 0.59 percent, to close at 52,182.74 on the New York Stock Exchange. The S&P 500 gained 86.41 points, or 1.18 percent, to finish at 7,440.43, while the Nasdaq climbed 522.53 points, or 2.07 percent, to end at 25,820.14.

Technology stocks that had recently pulled back on concerns over rising costs tied to AI investment rebounded sharply. Alphabet, which joined the Dow on Monday, surged more than 4.82 percent to lead the index higher. Major AI semiconductor names also advanced — Micron rose 1.14 percent, Nvidia gained 1.27 percent, Intel climbed 2.65 percent and AMD rose 3.43 percent.

SpaceX, which Nasdaq announced will join the Nasdaq 100 on July 7, gained 7.15 percent. Tesla surged 8.46 percent, and the VanEck Semiconductor ETF (SMH), a benchmark for the chip sector, shook off intraday weakness to finish up more than 3 percent.

Optimism about the AI investment cycle continued to build on Wall Street. Adam Parker, founder of Trivariate Research, said "not owning Micron right now is similar to ignoring Nvidia two and a half years ago," adding that "this AI cycle is qualitatively different from past memory chip cycles."

Expectations for a resumption of US-Iran talks also lifted investor sentiment. President Donald Trump said on his Truth Social platform that "Iran has requested a meeting" and that peace negotiations would resume Tuesday in Doha, Qatar. Iran said no official schedule had been confirmed but indicated it would send a delegation to Qatar, further fueling hopes for de-escalation between the two countries.

The Supreme Court's rejection of the Trump administration's request to immediately remove Federal Reserve Board Governor Lisa Cook also provided relief to markets. With expectations that the Fed's independence would be preserved, the yield on the 10-year Treasury note edged up 0.9 basis points to 4.38 percent, while the 2-year yield rose 2.1 basis points to 4.10 percent.

Analysts flagged the potential for heightened volatility this week, as trading hours are shortened ahead of the Independence Day holiday on Friday. Joe Tigay, portfolio manager at Equity Armor Investments, said "when trading days are compressed before a holiday, reduced liquidity can produce larger-than-expected swings." He also noted that as quarter-end approaches, asset managers tend to take profits in large-cap stocks that have already posted strong gains in order to make their returns look more attractive.

Oil prices ended higher despite the prospect of renewed US-Iran talks, as uncertainty in the Middle East remained unresolved. August Brent crude futures on the ICE Futures Exchange settled up 1.6 percent at $73.15 a barrel, while August West Texas Intermediate futures on the New York Mercantile Exchange rose 2.2 percent to $70.75 a barrel.


hajun825@heraldcorp.com