Dow Hits Record as Nasdaq Falls on Tech, Inflation

On Thursday, the Dow Jones Industrial Average reached a new intraday record while the Nasdaq Composite retreated after several large technology stocks fell amid concerns over higher semiconductor costs and fresh May inflation data.

The Dow rose 72 points, or 0.1%, driven by gains in Johnson & Johnson, JPMorgan Chase and a roughly 5% jump in Caterpillar. The Nasdaq fell 0.46% and the S&P 500 remained near unchanged. Apple declined about 5% after announcing price increases on MacBook and iPad models, citing higher component costs. Microsoft slipped nearly 4% after raising Xbox prices. Alphabet and Meta each fell roughly 1%.

Semiconductor names showed pockets of strength. Micron Technology surged about 14% after reporting strong fiscal third-quarter results and raising its guidance. Qualcomm gained about 6% after increasing its non-handset revenue outlook for fiscal 2029. Other chip-related companies including Sandisk, Western Digital, KLA and Applied Materials also advanced. The Philadelphia Semiconductor Index climbed 3.59% and was set for its strongest quarter on record.

May’s personal consumption expenditures index showed headline inflation rose 0.4% month-over-month and 4.1% year-over-year. Core PCE increased 0.3% monthly and 3.4% annually, the highest annual core reading since October 2023 but in line with forecasts. The 10-year Treasury yield eased to about 4.384%. LSEG data indicated traders still expected at least one interest-rate increase before year-end.

West Texas Intermediate crude moved higher after reports that a vessel was struck by an unidentified projectile in the Strait of Hormuz and several commercial ships reversed course while attempting to transit the waterway. The move followed four consecutive sessions of losses for WTI.

Bio-Techne shares rose after Germany’s Merck KGaA agreed to acquire the biotech company in an all-cash deal at $73 per share, implying an enterprise value of about $11.3 billion. Six of the 11 major S&P 500 sectors finished higher, led by industrials which climbed 1.9%. Consumer discretionary and consumer staples were among the laggards.

Investors rotated into healthcare, financials and industrials as markets balanced selective strength in chipmakers with weakness across large technology names and the latest inflation reading.