US Stock Market: Tech Gains Offset Economic Concerns

Published June 4, 2025 – Bloomberg News

Index Performance Snapshot

U.S. markets closed mixed on Wednesday:

S&P 500: +0.01% to 5,970.81

Nasdaq Composite: +0.3% to 19,460.49

Dow Jones Industrial Average: −0.2% to 42,427.74

Russell 2000: −0.2% to 2,098.48

Investors weighed weaker-than-expected service sector data for May and the slowest private job growth in over two years.

Interest Rate Outlook

Treasury yields fell, with the 10-year note dipping to 4.364%—its lowest since April. The market is now pricing in a 30% chance of a Fed rate cut by July, up from 24% the day before.

Sector Highlights

Technology:
Semiconductor stocks led the gains, with ON Semiconductor (+6.1%), GlobalFoundries (+2.3%), and NXP Semiconductors (+5.6%) boosted by chip production optimism.

Retail:
Dollar Tree dropped 8.4%. Despite a strong earnings beat, the company warned of potential Q2 profit impact from new tariffs.

Cybersecurity:
CrowdStrike slid 5.8% after issuing weaker-than-expected revenue guidance, despite solid Q1 earnings.

Economic and Political Context

Recent data has heightened recession fears, pushing investors to bet on policy easing. Meanwhile, President Donald Trump renewed criticism of the Federal Reserve, urging faster rate cuts to support the economy.

Source: Bloomberg