Nasdaq Hits New High Amid AI Boom... 'Photoshop' Adobe Up 15% [New York Stock Market]

NVIDIA, Apple, Broadcom Followed by
Adobe
Riding the Surge in Tech Stocks

The U.S. New York stock market closed mixed on the 14th (local time), with the Nasdaq index continuing its record-high streak for five consecutive trading days.

On this day at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average fell 57.94 points (0.15%) from the previous trading day to close at 38,589.16, and the large-cap-focused S&P 500 index dropped 2.14 points (0.04%) to finish at 5,431.60. Meanwhile, the tech-heavy Nasdaq index rose 21.32 points (0.12%) to 17,688.88.

By individual stocks, Adobe, famous for Photoshop, surged 14.51% amid the artificial intelligence (AI) boom. Thanks to this, the Nasdaq index set new all-time highs for five consecutive trading days. Adobe achieved its best performance in four years since 2020 due to increased demand for products integrated with generative AI features.

NVIDIA rose 1.75%. NVIDIA has maintained a strong trend following its 10-for-1 stock split. Apple’s stock price fell 0.82% on the day, marking its first decline in four trading days.

Tesla dropped 2.44%, while Broadcom’s stock price rose 3.34%. Broadcom has been rising for six consecutive trading days since the 7th after raising its earnings outlook and announcing a 10-for-1 stock split plan. Wall Street anticipates Broadcom joining the $1 trillion market capitalization club.

The expectation of the start of interest rate cuts, fueled by signals that U.S. inflation indicators are easing, also supported the rise in tech stocks.

However, Federal Reserve (Fed) officials emphasized the need to review more data on the day. Loretta Mester, President of the Cleveland Federal Reserve Bank, said that while the May inflation indicators are good news, more confirmation is needed on whether inflation figures are sustained before cutting rates. Austan Goolsbee, President of the Chicago Fed, described the recently released May Consumer Price Index (CPI) as "very good numbers" but said "more progress needs to be seen."

U.S. economic indicators showed signs of some slowdown. The U.S. Department of Labor announced that the import price index for May fell 0.4% compared to the previous month. The preliminary University of Michigan Consumer Sentiment Index for June was recorded at 65.6, down 3.5 points from the previous month, marking the lowest level in seven months.

The preliminary one-year expected inflation rate remained at 3.3%, unchanged from the previous month. The preliminary five-year long-term expected inflation rate rose slightly to 3.1% from 3.0% the previous month. According to the CME Group FedWatch Tool, the probability of the Fed cutting rates by 25 basis points in September rose to 68.5%, while the probability of holding rates steady in September was 31.5%.

By sector indices, consumer staples, technology, and communication sectors rose. Energy, financials, healthcare, industrials, materials, real estate, and utilities sectors declined.

International oil prices fell as the University of Michigan Consumer Sentiment Index dropped to its lowest level in seven months, reducing expectations for increased oil demand. West Texas Intermediate (WTI) crude oil closed at $78.45 per barrel, down $0.17 from the previous trading day, and Brent crude, the global oil price benchmark, closed at $82.62 per barrel, down $0.13.