Dow nears 40k as tech rally sets new records

The stock market continued its record-setting rally Thursday with the Dow Jones Industrial average notably flirting with 40,000 as technology shares made major gains.

The Dow jumped nearly 350 points, or 0.9 percent, putting it within striking distance of the major milestone. The S&P 500 and Nasdaq Composite have jumped 0.6 percent and 0.7 percent, respectively, on the day.

The microchip sector led the charge, buoying the Dow despite a slump in Apple stock after the Justice Department sued the smartphone giant, alleging the company has hurt competition and consumers, developers and small businesses.

Micron Technology soared 16 percent following stronger-than expected earnings. The semiconductor sector is up overall, with the VanEck Semiconductor ETF surging 3 percent, Marvell Technology and Taiwan Semiconductor up around 2 percent, and Nvidia and Intel up 1 percent.

Apple is down more than 4 percent, while tech stocks Microsoft, Amazon and Meta are all up around 1 percent.

Reddit also made its market debut Thursday after pricing its IPO at $34 a share, on the high end of its expected range,  on Wednesday. The popular forum website is the first major social media offering since Pinterest went public in 2019.

The Thursday rally adds to a winning day Wednesday that saw all three indexes close at new highs after the Federal Reserve said it still expects three interest rate cuts this year, even as it left borrowing rates unchanged.

While traders aren’t expecting a rate cut when the Federal Open Markets Committee (FOMC), the panel of Fed officials responsible for setting rates, meets again in May, they have priced in an almost 70 percent chance of a rate cut in June, according to the CME FedWatch Tool.