S&P500 and Dow Jones: Broadcom Lifts Tech Stocks as Industrial Average Slips
Broadcom jumped 4% after extending its chip supply partnership with Apple through 2031. The Philadelphia Semiconductor Index gained 3.8% on the session and the S&P 500 information technology sector advanced 1.9%. The deal gave the sector a reason to bounce and buyers did not wait. One stock, one announcement, and the entire chip complex reversed.
SK Hynix, the South Korean memory chip maker, begins trading on the Nasdaq later this week.
Rate Odds Keep Falling and ISM Changed Nothing
The Institute for Supply Management reported non-manufacturing PMI at 54.0 last month, matching expectations. No surprise and no reaction. Last week’s payrolls miss is still working through rate pricing. CME FedWatch shows a 23% chance of a July rate hike, down from 30% a week ago. Wednesday’s FOMC minutes will get attention but the payrolls number already did the work on rate expectations.
Stocks in the News
Microsoft fell 1.6% after cutting roughly 4,800 jobs, about 2.1% of its workforce, while AI spending continues to climb. O’Reilly Automotive dropped 6.5% on reports it submitted a cash offer for Genuine Parts, which also traded lower. SpaceX edged down ahead of its Nasdaq-100 addition on Tuesday.
What to Watch
Earnings season is the test this week. Delta Air Lines and PepsiCo report and the results will show whether the rotation into healthcare, industrials, and financials has legs or fades without earnings to back it up. Wednesday’s Fed minutes are the other event but the market has already priced July out. The minutes would need a hawkish surprise to change anything.
The S&P 500 is testing the June main top with the Nasdaq back above the 50-day moving average and the Dow pulling back after a fresh record. All three are at levels where follow-through this week confirms the move or sets up a reversal.
More Information in our Economic Calendar.