Dow Jones Closes Above 52,000 for the First Time Ever...Will Alphabet (GOOGL) and Semiconductor Halo Continue?

▲ U.S. Stock Market, Dow Jones, Alphabet (GOOGL), Semiconductors/AI Generated Image

The Dow Jones Industrial Average (DJIA) surpassed 52,000 for the first time ever, as Alphabet (GOOGL)'s inclusion in the index and a semiconductor stock rally simultaneously boosted the U.S. stock market.

According to cryptocurrency media outlet BeInCrypto on June 30 (local time), the Dow Jones Industrial Average closed at 52,182.74 on June 29, up 306.63 points or 0.59%. The S&P 500 Index (SPX) rose 1.18% to 7,440.43, and the Nasdaq Composite surged 2.07% to close at 25,820.14.

Alphabet rose approximately 5% on its first trading day as a constituent of the Dow Jones Industrial Average, replacing Verizon. BeInCrypto reported that while the mandatory buying effect was limited as Alphabet is already included in the S&P 500 Index and Nasdaq 100 Index, the symbolic nature of its inclusion in the blue-chip index itself boosted investor sentiment.

However, despite Monday's rise, Alphabet has fallen approximately 8% over the past month. Six out of the last seven weeks have seen a downward trend, and investor concerns have focused on its artificial intelligence (AI) execution capabilities. BeInCrypto also noted that market attention has once again turned to fund flows related to NVIDIA (NVDA) chips amid tightening computing accessibility.

Semiconductor stocks were another pillar of this rally. The VanEck Semiconductor ETF (SMH) rose more than 3%. Astera Labs (ALAB), KLA (KLAC), and Applied Materials (AMAT) each rose approximately 16%, 12%, and 11%, respectively, expanding the index's gains.

Macroeconomic variables also favored the stock market. The United States and Iran agreed to cease hostilities and allow commercial vessels to pass through the Strait of Hormuz. Brent crude and West Texas Intermediate (WTI) crude oil saw slight increases as the market weighed the continuation of the ceasefire, and the sustainability of the rally in the shortened trading week ahead of the July 4 holiday depends on the maintenance of the Iran ceasefire and the upward trend in semiconductor stocks.

*Related Article: "Interest Rate Fears Suppressed"...Dow Jones Recovers 52,000 Mark

[Article Summary]

- The Dow Jones Industrial Average closed at 52,182.74, surpassing 52,000 for the first time ever.

- Alphabet rose approximately 5% on its first day of inclusion in the Dow Jones Industrial Average, but has fallen approximately 8% over the past month.

- Strong semiconductor stocks and expectations of a U.S.-Iran ceasefire supported the overall upward trend in the stock market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*