Key facts
- Dow Jones Industrial Average hit a record closing high.
- S&P 500 reversed early losses to finish higher.
- Nasdaq Composite edged lower.
- Broadcom shares tumbled over 12% after disappointing results and AI chip sales forecast.
- UnitedHealth shares advanced 5.7% after a Bank of America upgrade.
- European bourses rose 0.52%.
Global stocks experienced choppy trading on Thursday, with European gains followed by a mixed session on Wall Street. The Dow Jones Industrial Average hit a record closing high, and the S&P 500 reversed early losses to finish higher, while the Nasdaq Composite edged lower. Technology shares drove losses, with Broadcom's shares tumbling over 12% after disappointing results and AI chip sales forecast, pulling semiconductor stocks broadly lower. The Philadelphia semiconductor index lost 2.2%. Healthcare and financial stocks led gains, with UnitedHealth advancing 5.7% after a Bank of America upgrade. European bourses rose 0.52%, and MSCI's gauge of stocks across the globe rose 0.09%. James St. Aubin, Chief Investment Officer at Ocean Park Asset Management, noted the weakness in chip stocks due to Broadcom's news and commented on the fragility of sentiment in tech after massive gains. Broadcom's second-quarter revenue of $22.19 billion missed expectations for $22.27 billion, but it also stuck with guidance for $100 billion in revenue next year, sending shares down 12.6%. The result jarred with markets conditioned to expect relentless upgrades, and the fallout in Asia underscored the skittish mood around chips and the AI boom that fuelled them. South Korea's KOSPI headed for a weekly drop of 3%, with heavy falls for Samsung and SK Hynix shares. The won was also trading at its lowest since 2009 under pressure from a wave of foreign selling. Oil prices held steady on Friday as traders waited for clarity on U.S.–Iran talks, but the week still points higher after earlier flare-ups stoked fears of a lasting supply shock. Brent crude hovered around $95 a barrel, eyeing a weekly gain of more than 3%. U.S. jobs data will headline the session on Friday. Expectations call for a modest 85,000 rise in May payrolls, but an upside surprise could give a boost to the dollar. The dollar index is set for a weekly gain, and the currency briefly touched 160 yen in Asia trading, drawing some verbal pushback from Japanese authorities who last month intervened around that level. U.S. Treasury yields were lower across the board, with the 10-year note falling 1.4 basis points to 4.477%. Spot gold rose 1.03% to $4,477.51 an ounce, and Bitcoin fell 2.53% to $63,265.22.