The Dow Jones Industrial Average (DJIA) closed Monday, June 29, for the first time above 52,000, thanks to Alphabet’s blue-chip debut and a broad rally in semiconductor stocks.

The index rose by 306.63 points, or 0.59%, and closed at 52,182.74. The S&P 500 climbed 1.18% to 7,440.43, and the Nasdaq Composite surged 2.07% higher to 25,820.14.

Alphabet’s Dow debut boosts sentiment

Alphabet (GOOGL) rose nearly 5% during the first session as a member of the Dow, after it replaced Verizon in the index. The addition is largely symbolic and has little impact on trading, because the stock already trades in both the S&P 500 and the Nasdaq 100, meaning there isn’t much need for additional fund purchases.

Despite the rebound on Monday, Alphabet is still having its worst month since February of last year. In six of the past seven weeks, the stock closed lower. Investors are worried about the rollout of AI, and Nvidia chip stocks are once again drawing a lot of attention as access to computing power becomes scarcer.

Semiconductors and geopolitics drive a broad rise

The VanEck Semiconductor ETF rose more than 3%, led by Astera Labs, KLA and Applied Materials, which gained approximately 16%, 12% and 11%, respectively.

Macro-economic easing also played a role. The US and Iran agreed to pause hostilities and allow commercial vessels to pass freely through the Strait of Hormuz.

Brent and West Texas Intermediate rose slightly, while traders awaited whether the ceasefire holds. BeInCrypto previously described how Iran’s oil deals affect the oil price and expectations for inflation.

Whether the rally continues in the shortened week leading up to July 4 depends on whether the ceasefire with Iran continues and whether the momentum in semiconductor stocks persists.