Wall Street rose Thursday as hopes for progress toward ending the Iran war boosted the Dow to a record closing high, while Broadcom’s disappointing results weighed on chip stocks and kept the Nasdaq nearly flat.
By yourNEWS Media Newsroom
Wall Street advanced Thursday, with the Dow Jones Industrial Average surging 875 points to a record closing high as investors responded to signs of possible progress toward ending the Iran war.
The rally was led by healthcare and financial stocks, which helped push the blue-chip index sharply higher. The S&P 500 also rose, though its gains were more limited, while the Nasdaq Composite ended nearly unchanged as weakness in semiconductor shares offset broader market optimism.
Preliminary data showed the S&P 500 gained 31.14 points, or 0.41%, to close at 7,584.82. The Nasdaq Composite fell 19.72 points, or 0.07%, to 26,834.26. The Dow Jones Industrial Average climbed 875.09 points, or 1.73%, to 51,562.16.
Investor sentiment improved after the U.S. House of Representatives passed a measure Wednesday that would block President Donald Trump from continuing the war on Iran. Markets were also lifted by a U.S.-mediated ceasefire agreement between Israel and Lebanon, which has been viewed as an important condition for Iran to agree to a peace deal.
However, uncertainty remained after Hezbollah, which is backed by Iran, rejected the truce and said it would not withdraw troops from Lebanon.
Oil markets reflected hopes that the conflict could move closer to resolution. Front-month crude futures fell amid expectations that tanker traffic through the Strait of Hormuz, a critical route for global energy shipments, could soon resume.
“How many deals have we had? It’s always right around the corner, a corner we’ve yet to reach,” said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois. “Things are moving, but are they moving at a pace that’s going to allow the world to get back to what passes for normal in a few weeks, a few months, or maybe sometime next year?”
The market’s advance was restrained by weakness in chip stocks after Broadcom missed revenue expectations. The results sent Broadcom shares lower and raised fresh questions about the strength of the artificial intelligence-fueled rally that has driven semiconductor stocks higher this year.
“About the only blemish on the market at this point is Broadcom, and I think investors are buying the dip,” Nolte said.
He said investors remain interested in the chip sector but are still evaluating whether valuations tied to the AI boom can be justified.
“I don’t think investors have given up on chips yet, but what they’ve yet to come to grips with, ‘Is this real? Are these valuations legitimate?’ I’m not sure yet that investors have really questioned that,” Nolte said.
Marvell Technology gained during the session, while Advanced Micro Devices, Micron Technology and Qualcomm declined.
Healthcare stocks helped support the Dow’s rally. UnitedHealth rose after Bank of America upgraded the healthcare company’s shares to “buy.”
Financial stocks also rebounded after a sharp selloff in the previous session tied to renewed concerns over private credit. Blackstone advanced after becoming the latest asset manager to cap withdrawals from its flagship private credit fund following an increase in redemption requests.
Economic data released Thursday added a more cautious note to the session. Initial jobless claims unexpectedly rose 6.1%, while first-quarter labor costs and productivity were revised sharply lower. A report from Challenger, Gray & Christmas showed announced layoffs by U.S. companies rose 11% in May to 97,006, with nearly 40% of those layoffs attributed to artificial intelligence.
CrowdStrike shares fell after the cybersecurity company reported higher quarterly operating expenses.
Investor attention also turned to SpaceX, as a roadshow began Thursday for the Elon Musk-led company ahead of its planned market debut on June 12. The company is seeking to raise $75 billion in a record initial public offering that would value SpaceX at $1.75 trillion.
Despite pressure in technology shares and mixed economic signals, the Dow’s record close reflected growing investor confidence that geopolitical risks could ease if negotiations related to Iran, Israel and Lebanon move closer to a durable settlement.
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