Nasdaq 100, Dow Jones, S&P 500 News: Chipmakers Drive Market Higher; Broadcom

Retail Sales Disappointment

Retail sales for May rose just 0.1%, falling short of the 0.2% growth anticipated by economists. Year-over-year, sales increased by 2.3%. The modest growth in retail sales raised concerns about consumer spending’s impact on the ongoing bull market. Investors are closely monitoring consumer activity as it is crucial for sustaining market momentum.

Impact on Treasury Yields and Stocks

Following the retail sales report, Treasury yields declined, providing some relief to stock prices. Investors are hopeful that slower economic growth might prompt the Federal Reserve to consider rate cuts. Despite the lackluster retail data, corporate profits and economic expansion have continued to support rising stock prices.

Chipmakers Lead Market Gains

Nvidia and Broadcom continued their impressive performance, each gaining approximately 1%. The rally in these semiconductor stocks spilled over to others in the sector, with Qualcomm and Taiwan Semiconductor both increasing by 2.5%. Micron Technology saw a significant 5% rise.

Broadcom’s Record Rally

Broadcom shares rose another 1.5% in premarket trading, building on a 5.4% rally from Monday. The company’s stock has been on an upward trajectory since surpassing quarterly earnings estimates and announcing a 10-for-1 stock split. Year-to-date, Broadcom has surged around 64%.

Sector Performance

Energy stocks led sector gains, rising 1.35%, while the technology sector followed with a 0.43% increase. Other sectors showed mixed performance: Financials gained 0.24%, Health added 0.17%, and Real Estate was up 0.29%. In contrast, Consumer Discretionary, Consumer Staples, Industrials, and Materials sectors experienced slight declines.

Federal Reserve Outlook

Several Federal Reserve officials, including Boston Fed President Susan Collins and Richmond Fed President Tom Barkin, are scheduled to speak throughout the day. Their remarks will be closely watched for insights into future monetary policy moves.