Market Indexes Switch Gear. Tech Might Continue To Lead.

On Thursday (12 June 2025), the U.S. stock market saw a generally positive day, with major indexes closing higher. Small caps fell, with the Russell 2000 dropping 0.4%.

S&P 500:Rose 0.4% (or 23.02 points) to close at 6,045.26, nearing its all-time high.

Dow Jones Industrial Average:Added 0.2% (or 101.85 points) to close at 42,967.62.

Nasdaq Composite:Gained 0.2% (or 46.61 points) to close at 19,662.48.

This performance marked a rebound from declines on the previous day (Wednesday) and put the major indexes on track for their third consecutive week of gains.

President Trump announced firm trade term offers to countries, with limited room for negotiation.

Tensions rose in the Middle East after U.S. Embassy staff in Baghdad were authorized to leave.

Reports suggest Israel might plan military actions against Iran with U.S. support.

Economic data included a cooler-than-expected PPI and a significant rise in jobless claims.

Economic indicators bolstered expectations for a rate cut in September.

Technology (+1.0%) and utilities (+1.3%) sectors led gains. The communication services sector underperformed, decreasing by 0.6%. Industrials were also weak, pressured by Boeing (BA) losing 4.8% after a crash incident.

Positive Inflation Data:A key driver was the release of May's U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, which showed inflation increasing less than expected. Headline CPI rose 0.1% (vs. 0.2% consensus) month-over-month and 2.4% year-over-year. Core CPI also rose just 0.1% in May, below expectations. This fostered optimism about potential interest rate cuts from the Federal Reserve.

Trade Negotiations:Investors were also awaiting more signs of progress on trade negotiations, particularly between the U.S. and China, which had a positive sentiment on the market.

Oracle (ORCL):Shares skyrocketed 13.3% after the company reported better-than-expected quarterly sales and profits, with strong growth in its cloud infrastructure revenue. This made Oracle the biggest S&P 500 advancer.

Gold Prices:Gold futures jumped 1.9% to $3,405 an ounce, reaching their highest level in a month, boosted by geopolitical tensions and expectations of interest rate cuts.

Boeing (BA):Shares fell 4.8%, making it the weakest S&P 500 performer, following a 787-8 aircraft crash in India. GE Aerospace (GE) and Spirit AeroSystems (SPR), suppliers to Boeing, also saw declines.

Coinbase Global (COIN):Slipped 3.8% as Bitcoin's price slid.

The 10-year Treasury yield fell six basis points to 4.36%.

Oracle (ORCL)announced ambitious growth targets, aiming for over $67 billion in revenue and a 70% increase in cloud infrastructure growth for fiscal year 2026. The company plans to expand its global data center footprint, with CEO Safra Catz highlighting a "tipping point" in Oracle's cloud transition. The announcement has bolstered investor confidence, with Oracle's stock seeing positive movement.

Chime Financial (CHYM)successfully priced its IPO at $27 per share, above the expected range, raising approximately $864 million. The fintech company's shares are set to begin trading on the Nasdaq, reflecting strong demand and investor interest in the IPO market. This move marks a significant milestone for Chime as it seeks to capitalize on its growth trajectory.

Though the share price might be stable, but the bulls have not yet taken back the control from the weekly timeframe, as we can see that the bulls is still trying to build a weekly uptrend, but fall short below the 200-day period, so we will need to see how BNTX share price would move next week and see if it can continue to build the weekly uptrend.

If it does then we might see BNTX attempting to clear its recent highs and could create a new high in coming week.

For NVDA, with the Generative AI demand coming up with their new framework and also Google’s new A2A framework, I am looking forward to see more demand for NVDA blackwell chips, as more companies in the robotics sector would speed up their production.

From the technical, we can see that it had been building very nice momentum, and the bulls are in control on the weekly timeframe, but the attempt to build the continuation might see some volatiltiy from the renewed tariffs concern, so now if the demand for NVDA chips could overcome the tariffs concern, I think investors sentiment could come back strong to push NVDA to a new high.

XPeng (XPEV)is reportedly developing AI chips for Volkswagen, marking a significant step in their partnership. The chips are expected to enhance computing capabilities in Volkswagen's vehicles, potentially improving autonomous driving systems. XPeng's stock saw a slight decline, reflecting market caution.

We could see technology stocks continue to lead the performance as investors are looking for the latest development in the AI space, specially on the AI chips as NVDA, XPEV are building their market share in this area.

The demand for AI would grow more significantly as companies would race to develop and speed up their current AI deployment.

Appreciate if you could share your thoughts in the comment section whether you think technology sector could continue to push indexes positive performance with stronger AI demand.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.