Dow hits record high as Broadcom selloff drags tech stocks lower

The Dow Jones Industrial Average pushed to an all-time high Thursday even as Broadcom’s sharp slide dragged technology lower, a split that showed money moving out of the hottest AI names and into steadier parts of the market. By 1:46 p.m. Eastern, the Dow was up 812 points, the S&P 500 had gained 0.4%, and the Nasdaq Composite was only 0.1% higher, with Broadcom and other chipmakers weighing on the tech-heavy index.

Broadcom was the day’s biggest pressure point. The stock fell more than 14% in early trading after results came in below investors’ lofty expectations, even though the company kept its long-range target of $100 billion in sales from AI chips. Reuters said that if those losses held, Broadcom’s market value would shrink by more than $315 billion. The reaction underscored how much of the AI trade had already been priced in after months of gains.

The rest of the market looked healthier than the Nasdaq weakness suggested. About two-thirds of S&P 500 stocks were advancing intraday, a sign that the rally had widened beyond a narrow group of megacap technology names. UnitedHealth led the Dow higher, rising more than 5%, while JPMorgan Chase and Walmart also added to the index’s advance. That combination helped keep the blue-chip average climbing even as chip stocks retreated.

Oil’s decline also supported the tone on Wall Street. Crude prices eased as traders tracked conflicting developments in the Middle East conflict, including the possibility of further talks with Iran. AFP-linked reporting said Iran saw no tangible progress in negotiations, while the U.S. House of Representatives passed a resolution seeking to halt American military action in Iran. Lower oil prices helped ease pressure on inflation-sensitive sectors and gave investors another reason to lean into equities.

The move came after an already stretched run for U.S. stocks. The S&P 500 closed May with a ninth straight weekly gain, its longest streak since 2023, after booking 11 record closing highs in the month. The index rose 5.15% in May, compared with an 8.36% gain for the Nasdaq and 2.78% for the Dow. The S&P 500 also crossed 7,600 for the first time on June 2, leaving Thursday’s action looking less like a fresh breakout and more like a rotation inside an extended rally.

For retirement savers, the signal is clear: the market is still climbing, but leadership is shifting. The gains are now being carried more by health care, financials and consumer staples than by the same AI winners that powered the spring advance, a change that makes the rally look broader in the short term but more defensive underneath.