Dow Hits Record High as Financials and Healthcare Rally Amid Tech Slump

US stock indexes finished mixed on Thursday, highlighted by the Dow Jones Industrial Average reaching a new all-time high. Despite early volatility, the broader market recovered as a 3% drop in crude oil prices pushed 10-year T-note yields down 2 basis points to 4.47%. Strength in the banking and managed healthcare sectors provided the primary momentum for the Dow’s record-breaking session.

Conversely, technology stocks dragged down the Nasdaq 100, which closed in negative territory. Broadcom led the decline, plunging over 12% after its artificial intelligence revenue forecasts failed to meet investor expectations. Cybersecurity firm CrowdStrike Holdings also fell more than 3%; while the company reported better-than-expected Q1 earnings, the results were insufficient to sustain the stock’s rally from its March lows.

The decline in WTI crude oil, which fell over 3%, served as a positive catalyst for both equities and bonds. The price drop followed reports of a proposed ceasefire between Israel and Lebanon, contingent on Hezbollah’s withdrawal from border areas. While Hezbollah has expressed resistance to the terms, Iranian Foreign Minister Abbas Araghchi confirmed that communication between Iran and the US remains open, though no tangible progress has been reported.

Economic data for the day provided a mixed signal. Initial jobless claims rose by 13,000 to 225,000—a 3.75-month high—indicating a softer labor market than anticipated. Additionally, Q1 nonfarm productivity was revised downward to 0.3% from 0.8%. However, Q1 unit labor costs were unexpectedly revised down to 1.8% from 2.3%, which helped alleviate concerns regarding persistent wage inflation.

Current market pricing suggests only a 2% probability of a 25 basis point rate hike at the upcoming FOMC meeting on June 16-17. The Q1 earnings season is nearing its end with 83% of the 494 reporting S&P 500 companies beating estimates. Overall Q1 earnings for the S&P 500 are projected to rise 12% year-over-year; however, excluding the technology sector, earnings growth is projected at approximately 3%, the lowest level in two years.

Global markets were similarly split, with the Euro Stoxx 50 gaining 0.82%, while China’s Shanghai Composite and Japan’s Nikkei Stock Average fell 0.64% and 1.36%, respectively.

Interest Rates

September 10-year T-notes closed up 4.5 ticks, with yields falling to 4.471%. The rally was supported by the drop in oil prices, which lowered inflation expectations and drove the 10-year breakeven inflation rate to a six-week low of 2.365%. T-notes also benefited from the softer jobless claims and revised labor costs, though gains were capped as the stock market rebound reduced safe-haven demand.

In Europe, the 10-year German Bund yield fell 1.3 basis points to 3.023%, and the 10-year UK gilt yield dropped 3.3 basis points to 4.898%. Eurozone retail sales for April fell 0.4% month-over-month, slightly worse than the expected 0.3% decline. Swaps currently indicate a 98% probability of a 25 basis point ECB rate hike on June 11.

US Stock Movers

Managed healthcare saw significant gains, led by Humana (HUM), which rose over 6% following a price target increase to $240 by Morgan Stanley. UnitedHealth Group (UNH) and Centene (CNC) both climbed over 5%, with UnitedHealth benefiting from a Bank of America upgrade to “buy” with a $450 target. Elevance Health (ELV) and Molina Healthcare (MOH) gained over 4%, while Cigna Group (CI) and CVS Health (CVS) rose over 3%.

The financial sector also rallied, with Blackstone (BX) jumping over 7% and Franklin Resources (BEN) rising over 5%. Goldman Sachs (GS), Fifth Third Bank (FITB), and US Bancorp (USB) all gained more than 4%, while JPMorgan Chase (JPM), Morgan Stanley (MS), and BlackRock (BLK) saw gains exceeding 3%.

In the semiconductor space, Broadcom’s (AVGO) 12% slide weighed heavily on the Nasdaq 100. Micron Technology (MU) fell over 7%, and ARM Holdings (ARM) dropped over 4%. AMD, Qualcomm (QCOM), and Western Digital (WDC) all declined more than 3%.

Other notable movers included Medtronic Plc (MDT), which rose over 5% on a BTIG upgrade, and RTX Corp (RTX), which gained 4% following a Jefferies upgrade. Alnylam Pharmaceuticals (ALNY) climbed over 3% after announcing a $2 billion AI collaboration with Inceptive Nucleics. Brown-Forman (BF.B) rose over 2% after reporting a strong Q4 gross margin of 62.6%.

On the downside, PVH Corp (PVH) plummeted over 20% after issuing weak 2027 EPS forecasts. Ciena Corp (CIEN) fell 13% due to a lackluster sales outlook, and Five Below (FIVE) dropped 13% on concerns that its growth rate has peaked. AT&T (T) and Verizon (VZ) both declined over 3% following a Supreme Court ruling regarding FCC fine jury trials.

Earnings Reports (6/5/2026)

ABM Industries Inc (ABM), G-III Apparel Group Ltd (GIII), Lifezone Metals Ltd (LZM).

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