Wall Street record high gains were led by the Dow on Thursday as hopes for progress toward ending the Iran war boosted investor sentiment, while Broadcom dragged chip stocks lower.
Preliminary data showed the Dow Jones Industrial Average rose 875.09 points, or 1.73%, to 51,562.16. The S&P 500 gained 31.14 points, or 0.41%, to 7,584.82, while the Nasdaq Composite slipped 19.72 points, or 0.07%, to 26,834.26.
Broadcom missed revenue expectations, sending its shares lower and cooling the artificial intelligence-driven chip rally. Marvell Technology gained, while Advanced Micro Devices, Micron Technology and Qualcomm lost ground.
Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois, said Broadcom was “about the only blemish” on the market. He said investors had not given up on chips but still faced questions over valuations.
The market mood improved after the U.S. House of Representatives passed a measure to block President Donald Trump from continuing the Iran war. A U.S.-mediated Israel-Lebanon ceasefire also supported hopes for a wider deal, though Hezbollah rejected the truce terms.
Front-month crude futures fell as investors hoped tanker traffic through the Strait of Hormuz could resume. Nolte said peace efforts were moving but questioned whether they would restore normal conditions within weeks, months or later.
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Economic data stayed mixed. Initial jobless claims rose 6.1%, while Challenger, Grey and Christmas said U.S. corporate layoff announcements increased 11% in May to 97,006, with nearly 40% attributed to AI.
UnitedHealth lifted healthcare stocks after Bank of America upgraded the company to “buy.” Blackstone shares rose after it capped withdrawals from its flagship private credit fund, while CrowdStrike fell after reporting higher quarterly operating expenses
