Wall Street brushed aside renewed fears of a private credit crunch on Thursday, even after Blackstone limited withdrawals from its $79 billion flagship fund to 5%. Falling oil prices also helped improve investor sentiment following an early sell-off in technology stocks.
Trading remained mixed across Wall Street on June 4, as investors rotated out of semiconductor and AI-linked stocks after their massive rally, while shifting capital into old-economy sectors, helping the Dow Jones Industrial Average surge to a fresh record high.
The Dow rebounded sharply from Wednesday’s 600-point decline, soaring nearly 900 points to close at an all-time high. The S&P 500 erased early losses of more than 0.5% to finish higher by a similar margin. Meanwhile, the Nasdaq 100 recovered from an intraday drop of 1.6% but still ended down 0.5%, while the Nasdaq Composite managed to close nearly flat after falling over 1% earlier in the session.
The AI-driven rally faced pressure after Broadcom issued results and guidance that disappointed investors, sending its shares down 13% on Thursday. Other semiconductor names including ARM Holdings and Micron Technology — both of which had rallied between 100% and 200% this year — also declined, weighing on the broader tech sector.
However, dip buyers eager to capitalize on the AI theme stepped back into major tech names such as Nvidia, Microsoft, and Alphabet. These stocks reversed their early losses and ended the session with gains ranging from 2% to 4%.
On the geopolitical front, there was little visible progress in negotiations between the US and Iran, according to Iranian Foreign Minister Seyed Abbas Araghchi, despite US President Donald Trump claiming on Truth Social that talks to end the conflict were in their final stages.
Iran-backed Hezbollah also dismissed the US-announced truce between Israel and Lebanon, describing the agreement as “absurd.”
Still, reports suggesting Trump was reluctant to escalate the conflict into a full-scale war helped cool oil prices. Brent crude retreated toward $95 per barrel after briefly touching $98 earlier in the day, providing additional support to Wall Street sentiment.
Meanwhile, concerns surrounding the private credit market failed to trigger a broader sell-off. Blackstone’s stock climbed more than 7% despite the company capping withdrawals from its flagship fund and warnings from PIMCO CIO Daniel Ivascyn about rising losses across the credit industry.
Looking ahead, investors are closely watching Friday’s US jobs report, which is expected to be the key market catalyst. Economists surveyed by Bloomberg forecast May non-farm payrolls to come in at 89,000, while the unemployment rate is projected to remain unchanged at 4.3%.
The labor market data comes amid rising concerns over slowing employment conditions, with tech companies announcing their biggest round of layoffs in two years during May, according to Challenger, Gray & Christmas Inc., while jobless claims recently climbed to their highest level since February.
