Dow Jones Closes Above 52,000 for the First Time Ever... Will Alphabet (GOOGL) and Semiconductor Halo Continue?

▲ U.S. Stock Market, Dow Jones, Alphabet (GOOGL), Semiconductor/AI Generated Image

The Dow Jones Industrial Average (DJIA) surpassed the 52,000 mark for the first time ever, as Alphabet (Alphabet, GOOGL)'s inclusion in the index and a rally in semiconductor stocks simultaneously boosted the U.S. stock market.

According to crypto media outlet BeInCrypto on June 30 (local time), the Dow Jones Industrial Average closed at 52,182.74 on June 29, up 306.63 points or 0.59%. The S&P 500 Index (SPX) rose 1.18% to 7,440.43, and the Nasdaq Composite surged 2.07% to close at 25,820.14.

Alphabet rose approximately 5% on its first trading day as a component of the Dow Jones Industrial Average, replacing Verizon. BeInCrypto reported that while the forced buying effect was limited because Alphabet is already included in the S&P 500 Index and Nasdaq 100 Index, the symbolic significance of its inclusion in the blue-chip index itself boosted investor sentiment.

However, despite Monday's rise, Alphabet has fallen approximately 8% over the past month. Six out of the last seven weeks have seen a downward trend, and investors' concerns have focused on the company's artificial intelligence (AI) execution capabilities. BeInCrypto noted that market attention has also turned back to NVIDIA (NVDA) chip-related capital flows amid tightening computing accessibility.

Semiconductor stocks were another pillar of this rally. The VanEck Semiconductor ETF (SMH) rose by over 3%. Astera Labs (ALAB), KLA (KLAC), and Applied Materials (AMAT) increased by approximately 16%, 12%, and 11% respectively, amplifying the index's gains.

Macroeconomic factors also played a favorable role in the stock market. The United States and Iran agreed to cease hostilities and allow commercial vessel passage through the Strait of Hormuz. Brent crude and West Texas Intermediate (WTI) saw slight increases amidst speculation about the ceasefire's longevity, and the continuation of the rally in the shortened trading week ahead of the July 4 holiday depends on the maintenance of the Iran ceasefire and the upward trend in semiconductor stocks.

*Related Article: "Interest Rate Fears Quashed"...Dow Jones Recovers 52,000 Mark

[Article Summary]

- The Dow Jones Industrial Average closed at 52,182.74, surpassing the 52,000 mark for the first time ever.

- Alphabet rose approximately 5% on its first day of inclusion in the Dow Jones Industrial Average but has fallen approximately 8% over the past month.

- Strong semiconductor stocks and expectations of a U.S.-Iran ceasefire supported the overall upward trend in the stock market.

*Disclaimer: This article is for informational purposes only and does not take responsibility for investment losses based on it. The content should be interpreted solely for informational purposes.*