NASDAQ Hits Record High Again, Why Did Dow Decline?

The U.S. stock market finished mixed as gains in memory semiconductors and AI shares offset weakness elsewhere. The S&P 500 rose 0.6% to 7,519.12, while the Nasdaq climbed 1.2% to an all-time high of 26,656.18. The Dow Jones Industrial Average, however, slipped 0.2% to 50,461.68.

Micron Technology led the rally, jumping nearly 18% after UBS aggressively raised its price target on expectations of robust AI-driven memory demand. Once Micron’s market capitalization topped $1 trillion, semiconductor and data-center stocks broadly rallied. Airlines and cruise operators also advanced on the back of lower oil prices, while energy and defensive sectors lagged.

On the global front, progress in U.S.–Iran talks over a Middle East ceasefire and the reopening of the Strait of Hormuz bolstered risk appetite. Falling oil prices and easing U.S. Treasury yields alleviated inflation concerns, supporting tech valuations.

Yet the Conference Board’s consumer confidence index dipped to 93.1 in May from 93.8 in April, suggesting households are less upbeat than equity markets imply. Federal Reserve commentary was muted, and investors are now bracing for this week’s Personal Consumption Expenditures inflation report and revised first-quarter GDP figures to gauge how long interest rates may remain on hold.

While AI and semiconductor strength is likely to continue, elevated valuations and signs of economic slowing call for a portfolio review in anticipation of greater short-term volatility.