U.S. stock markets rallied with tech stocks leading the charge after Federal Reserve officials hinted at a potential rate cut in June. The Dow Jones Industrial Average climbed 487 points, closing above 40,000, while the Nasdaq soared 2.74% and the S&P 500 gained 2.03%. The Philadelphia Semiconductor Index surged over 5%, driven by bullish sentiments in chip stocks such as Nvidia (NVDA, Financial), which rose 3.62%, and Broadcom (AVGO), up 6.35%.
President Trump renewed his call for a rate cut, criticizing the central bank's cautious stance. Fed officials expressed divergent views on monetary policy, with some open to early rate cuts if the job market deteriorates. Meanwhile, Trump indicated potential new tariffs on multiple countries, including China, which has yet to initiate fresh trade talks with the U.S.
Key tech giants in the NYSE FANG+ index posted significant gains: Meta (META) rose 2.48%, Apple (AAPL) increased 1.84%, Alphabet (GOOGL) climbed 2.53%, Microsoft (MSFT) gained 3.45%, and Amazon (AMZN) advanced 3.29%.
In economic data, U.S. jobless claims were reported at 222,000, aligning with expectations, while durable goods orders showed a strong increase. Despite positive momentum, analysts caution that markets remain volatile amid tariff-related uncertainties.
