New York, June 4, 2026, 11:04 EDT
Dow ticks up on healthcare and banks, but the Nasdaq is weaker with AI chip stocks sliding in late-morning trade Thursday. U.S. stock indexes were mixed.
Stocks were mixed just after 11 a.m. in New York, with the Dow Jones Industrial Average ahead by 1.57% at 51,481.46 and the S&P 500 adding 0.08% to 7,559.93. The Nasdaq Composite slipped 0.47% to 26,727.74. The tech-heavy Nasdaq 100 dropped 0.90%, pointing to weakness in tech shares, according to Investing.com data.
AI stocks take a hit as Broadcom sinks 15% on forecast The surge in stocks this year has leaned heavily on artificial intelligence. Broadcom (AVGO) turned into a key test for that trend on Thursday. Shares dropped about 15% after Broadcom missed revenue estimates and held its AI-chip sales outlook steady instead of raising it.
Broadcom had been a top choice for investors looking to gain from demand for custom AI chips outside Nvidia, with customers like Alphabet and Meta. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said this was “very high expectations” clashing with a market that “wanted perfection.” Bernstein’s Stacy Rasgon said the stock “may take a pause” until the story gets better into 2027. Reuters
Semiconductor names fell. Marvell Technology, AMD, Micron, and Qualcomm dropped as the Philadelphia semiconductor index slipped. The decline held down the market, even with more advancers than decliners. Broadcom CEO Hock Tan said quarterly AI chip revenue more than doubled to $10.8 billion and demand is “only getting bigger,” but Broadcom shares struggled after the recent rally. AP News
Most investors switched money around the market instead of pulling out. Reuters said nine of the 11 main S&P sectors traded higher at one point, with healthcare leading, up 2.4%. UnitedHealth climbed after Bank of America moved its rating to “buy.” Daniela Hathorn at Capital.com said the action looked like “profit-taking, stretched positioning and a reassessment of geopolitical risks.” Reuters
Oil took a hit outside of tech. Brent crude, the global benchmark, dropped nearly 3% after a Lebanon-Israel ceasefire raised expectations for a bigger deal easing tensions at the Strait of Hormuz, a main oil route. PVM Oil analyst John Evans said Iran wants Israel to stop acting against Hezbollah, and called it “a breakthrough.” Reuters
Jobless claims ticked up again. Initial claims for unemployment benefits climbed by 13,000 to 225,000 for the week ended May 30. That beat forecasts; economists had looked for a smaller jump. Still, the overall trend in jobless claims suggests the labor market remains steady. Economists in a Reuters poll are looking for the payrolls report due Friday to show employers added 85,000 jobs in May, with the jobless rate holding at 4.3%.
Blackstone is putting a lid on withdrawals from its $79 billion private credit fund, after requests to pull money hit 10% of shares. Investors can still exit up to the normal 5% limit often used for these types of vehicles. Private credit refers to loans done outside public bond and loan markets, mostly to companies that don’t use syndicated loans.
The chance is Thursday’s split market could lose its calm. If investors read Broadcom’s report as a signal for AI demand across the sector, not just one crowded name, selling could move out of chips and into bigger tech stocks that power the S&P 500. A move higher in oil or a soft jobs number on Friday would make it tougher for that rotation to last.
The tape isn’t one-way right now. The Dow traded better, and market breadth outperformed what the Nasdaq showed. Buyers kept picking up areas that don’t look as stretched on AI. Still, the big takeaway from this morning is clear: the AI trade has a higher bar now. Just matching it doesn’t cut it anymore.
