NEW YORK — Wall Street logged gains on Thursday as geopolitical optimism surrounding a potential end to the conflict with Iran boosted investor confidence. However, a steep post-earnings selloff in Broadcom weighed heavily on the semiconductor sector, capping gains for the tech-heavy Nasdaq.
The blue-chip Dow Jones Industrial Average spearheaded the rally, surging over 870 points to clinch a record closing high, fueled by a strong rebound in healthcare and financial equities. In contrast, the benchmark S&P 500 posted modest gains, while the Nasdaq Composite finished the session virtually flat.
The technology sector faced stiff headwinds after AI-favorite Broadcom missed quarterly revenue expectations. The disappointing financial results sent Broadcom’s shares tumbling, cooling down the high-flying semiconductor rally that has dominated the market this year. While some market strategists view the drop as a temporary buying opportunity, the miss has forced investors to look closer at the sky-high valuations of AI-adjacent chip stocks. Other major chipmakers, including Advanced Micro Devices (AMD), Micron Technology, and Qualcomm, all closed lower, though Marvell Technology bucked the trend to post gains.
Market sentiment was heavily influenced by significant geopolitical developments. The U.S. House of Representatives passed a legislative measure aimed at blocking President Donald Trump from continuing military action against Iran. Additionally, optimism was fueled by a U.S.-mediated ceasefire agreement between Israel and Lebanon—a crucial prerequisite for a broader peace deal with Iran. Although pro-Iran Hezbollah rejected the truce and stated it would not withdraw troops from Lebanon, front-month crude oil futures dropped, reflecting global market hope that commercial tanker traffic through the strategic Strait of Hormuz could soon safely resume.
On the domestic economic front, the data painted a mixed picture. Weekly initial jobless claims unexpectedly rose by 6.1%, while corporate layoffs for May jumped 11% to 97,006, with nearly 40% of those job cuts attributed to automation and AI restructuring. Furthermore, first-quarter labor costs and productivity metrics were revised sharply lower.
In corporate highlights, the healthcare sector received a major lift from UnitedHealth Group after Bank of America upgraded the conglomerate’s stock rating to “Buy.” The financial sector also recovered from a previous private credit scare; Blackstone shares advanced after the asset manager capped withdrawals from its flagship private credit fund to manage a surge in redemption requests. Conversely, cybersecurity giant CrowdStrike saw its stock slump due to rising quarterly operating expenses. Meanwhile, investor attention turned toward Elon Musk’s SpaceX, which launched its investor roadshow ahead of a highly anticipated June 12 market debut. The historic IPO aims to raise $75 billion, targeting an unprecedented $1.75 trillion valuation.
According to preliminary closing data:
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The Dow Jones Industrial Average surged 875.09 points, or 1.73%, to finish at 51,562.16.
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The S&P 500 advanced 31.14 points, or 0.41%, to close at 7,584.82.
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The Nasdaq Composite slipped 19.72 points, or 0.07%, to end at 26,834.26.
