Dow Jones Hits Record High as Oil Prices Fall; Samsung Workers Approve Wage Deal
The Dow Jones Industrial Average closed at a record level as oil prices retreated, while Samsung Electronics shares surged 7% after South Korean workers approved a provisional wage agreement, averting a potential semiconductor supply chain disruption.
Market Milestones
The Dow Jones Industrial Average rose to a new record on Wednesday as oil prices retreated, while the S&P 500 eked out a tiny gain, with chip stocks keeping the index's gains in check. The 30-stock Dow gained 182.60 points, or 0.36%, for a record close of 50,644.28. The broad market S&P 500 ticked 0.02% higher to 7,520.36, another closing record. The Nasdaq Composite also edged up 0.07% to end at 26,674.73.
Oil Price Retreat and Market Support
A decline in oil prices lent the Dow some support. U.S. crude oil fell 5.55% to settle at $88.68 a barrel after Iranian state media said the country is committed to restoring commercial traffic through the Strait of Hormuz to pre-war levels within one month, per Reuters. However, the White House denied the Iranian state media report as a "complete fabrication."
Samsung Labor Agreement Eases Supply Chain Concerns
Shares of Samsung Electronics rose 7% after unionized workers at the company in South Korea approved a provisional wage agreement. Of the 62,616 workers who voted, 73.7% were in favor of the deal involving bonus payouts at the hugely profitable chipmaker. The approval comes after a tentative agreement was reached on May 20, averting a planned 18-day strike that could have disrupted global semiconductor supply chains.
Banking Sector Developments
Shares were down 2% after CEO Jamie Dimon said that the bank could spend as much as $20 billion on an acquisition "in the next couple years." This signals JPMorgan's appetite for major acquisitions as consolidation pressures mount in the financial sector.