Dow Jones Jumps While Nasdaq Edges Down As Investors Rotate From Tech
The Dow Jones Industrial Average jumped on Thursday while the Nasdaq Composite edged down as investors rotated from technological companies following weeks of steady gains.
Concretely, the DJIA climbed 875 points, or 1.7%, and closed the session at 51561.93. The S&P 500 also gained, with 0.41%, while the tech-heavy Nasdaq Composite decreased by 0.09%.
UnitedHealth led gains in the Dow Jones with a 5%. JPMorgan Chase and Walmart also closed higher.
On the other end of the spectrum, Broadcom plunged 14% after reporting a revenue miss in the fiscal second quarter. Semiconductor companies lost as well.
“After an astonishing earnings season, the AI trade is still alive and well, but this rally is getting tired after an incredible more than two-month surge,” said Dennis Follmer, chief investment officer at Montis Financial. “With no end in sight for the stalemate in the Strait of Hormuz, we would not be surprised to see stocks stall for a while as that reality sinks in and it catches its breath from this recent streak.”
In the geopolitical front, Hezbollah leader Naim Qassem appeared to reject the ceasefire conditions announced by Lebanon and Israel on Wednesday.
In a written statement read on Hezbollah’s Al-Manar TV, Qassam said having fighters withdraw from areas south of the Litani River would mean “surrender, defeat and achieving the enemy’s goals.”
He went on to say that as long as Lebanese infrastructure and people are targeted, the group will keep striking northern Israel. Iran has said that a ceasefire in the country is a key condition to end the war with the U.S.
“We did not make any commitment to any party to stop resisting as long as there is occupation,” said Qassem, who also urged Lebanese authorities to stop negotiating with Israel.
The remarks come after the countries agreed on implementing a ceasefire conditional on Hezbollah stopping its attacks and withdrawing from the mentioned area.
The decision was announced jointly by Israel, Lebanon and the U.S., and comes after two days of negotiations. It also involves the creation of “pilot zones” in the southern part of the country in which Lebanese Armed Forces will take exclusive control and ensure the militia, long considered an Iran proxy, is not there.
“These steps will enable progress towards a comprehensive peace and security agreement,” the statement noted. “All countries reaffirmed that the future of the relationship between Israel and Lebanon must be decided by the two sovereign governments,” it added.
Elsewhere, the countries reaffirmed in the document “that they have no hostile intent toward one another and committed to continuing direct negotiations to build confidence, resolve all outstanding issues, and work toward a comprehensive agreement between the two countries.” They will hold another round of negotiations aimed at reaching a comprehensive agreement later this month.
