The Dow Jones Industrial Average topped 52000 for the first time on Monday, highlighting investors' increasing demand for stocks at the heart of the American economy.
One major contributor was Alphabet, which rose 4.8% to lead gains on the Google-parent's first day as one of the blue-chip index's 30 components. That provided a new boost to the Dow industrials, which have benefited lately from gains in a diverse group of companies ranging from Caterpillar to Johnson & Johnson. Shares of both were up Monday, joined by strong advances in Amazon.com, Cisco Systems, Nike and Visa.
And Alphabet's climb was just part of a broad advance in technology shares that sent the Nasdaq composite up 2.1% on Monday. That helped shake off some of the malaise that made last week one of the worst for tech stocks in months, fueled by worries about rising interest rates and the cost pressures the artificial intelligence build-out is creating for companies and consumers.
"When you get through psychological high water marks like a new high in the Dow or the S&P, people who have cash on the sidelines start to feel some FOMO," said Richard Steinberg, senior global market strategist at Focus Partners Wealth.
Both the Nasdaq and S&P 500 broke five-session losing streaks, with the broad benchmark rising 1.2%. The Dow industrials added 307 points, to 52182.74.
Along with Alphabet, fellow members of the so-called Magnificent Seven tech giants Amazon, Meta and Nvidia notched decent, if not magnificent, gains, ending the day up 3.2%, 2.2% and 1.3%, respectively. Microsoft lost 1.2% and Apple slipped 0.7%.
Tesla climbed 8.5%. Fellow Elon Musk company, SpaceX, rose more than 7%. The two are tightly linked, jointly developing a chip fabrication complex in Texas. At least one analyst has predicted they will combine.
But highlighting investors' confidence in U.S. growth, the Russell 2000 index of smaller stocks hit a new record too, despite trailing other major benchmarks on Monday with a gain of less than 0.1%. The Russell is up 21% so far this year as the second quarter approaches an end, one of its best performances in more than three decades.
Those gains are especially notable because they come as many investors expect rates to rise later in the year, pressuring smaller companies with higher borrowing costs.
But peace talks in the Middle East have brought down oil prices, easing fears of inflation and pressure on the bond market. Both oil prices and bond yields climbed on Monday after fighting over the weekend again heightened the risks to vessels transiting through the Strait of Hormuz.
Futures for Brent crude, the international benchmark, rose 1.6% to $73.15 a barrel. The yield on the 10-year Treasury, which helps set borrowing costs across the economy, ended a four-day streak of declines and rose slightly to 4.375%.
Yields held steady after the Supreme Court rejected President Trump's bid to fire Federal Reserve governor Lisa Cook with little legal scrutiny. The case has been closely watched by investors, who view Fed independence as a pillar of bond-market stability.
Significant pressures remain. Those include the potential for renewed fighting in the Middle East and worries that the AI build-out won't yield profits justifying companies' massive expenditures.
Some said that despite the recent rotation from tech to the blue-chips, along with sectors including healthcare and industrials, the rally remains heavily concentrated in a handful of chip giants.
"My sense is that the risk appetite to buy tech dragged everything up with it," said Joseph Brusuelas, chief economist at RSM.
Write to Heather Gillers at heather.gillers@wsj.com and Rebecca Feng at rebecca.feng@wsj.com
(END) Dow Jones Newswires
June 29, 2026 19:13 ET (23:13 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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