4:20pm: Defensive stocks shine
Wall Street finished with a mixed performance on Thursday as investors shifted money into defensive sectors and established blue-chip names, sending the Dow to a fresh record high.
The Dow surged 875 points, or 1.7%, to close at 51,562, marking its strongest session in weeks. The S&P 500 added 31 points, or 0.4%, to end at 7,584, while the Nasdaq slipped 23 points, or 0.1%, to 26,831.
The day's gains were driven by a broad rotation away from some of the market's high-flying technology stocks and into more traditional sectors. Shares of major companies such as UnitedHealth, JPMorgan Chase and Walmart helped power the Dow higher as investors sought stability and value amid elevated valuations in parts of the tech sector.
Technology stocks faced pressure after disappointing guidance from semiconductor giant Broadcom sparked a selloff across the chip sector, weighing on the Nasdaq despite strength elsewhere in the market.
Elsewhere, oil prices eased as hopes grew for a potential ceasefire in the Middle East, reducing concerns about supply disruptions. The cryptocurrency market also came under pressure, with total market capitalization declining amid significant investor outflows.
Investors will now turn their attention to several closely watched earnings reports due after the closing bell, including results from Lululemon, Rubrik, Planet Labs and Docusign, which could provide fresh insight into consumer spending trends and demand for enterprise software and technology services.
3:50pm: Proactive news headlines
- Amneal Pharmaceuticals received FDA approval for its ready-to-use romidepsin injection and gained 180 days of market exclusivity through the Competitive Generic Therapy program.
- AtaiBeckley Inc. maintained Jefferies' bullish outlook, with the firm reiterating a Buy rating and $10 price target based on progress in its late-stage psychedelic drug pipeline and an improving regulatory environment.
- U.S. Energy Corp. changed its name to Big Sky Industrial Inc. and will begin trading under the ticker symbol BSIN as it shifts its focus toward helium production and carbon management.
- Trillion Energy International made a second $250,000 payment toward earning a 29% interest in a Turkish oil concession while advancing plans for a new seismic exploration program.
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) plans to launch a fully funded district-wide drilling program at its Gunnison copper project and the Strong & Harris satellite deposit in Arizona.
2:45pm: Market movers
- LanzaTech Global said a joint venture in which it held a 9.31% stake completed a roughly $75 million IPO on the Hong Kong Stock Exchange, valuing the venture at about $750 million.
- Amneal Pharmaceuticals received FDA approval for its ready-to-use romidepsin injection and secured 180 days of market exclusivity under the Competitive Generic Therapy program.
- CrowdStrike Holdings Inc (NASDAQ:CRWD) fell despite posting stronger-than-expected quarterly results and raising guidance, as analysts continued to view the company favorably and recommended buying the pullback.
- UnitedHealth Group Inc (NYSE:UNH, XETRA:UNH) climbed after Bank of America upgraded the stock to Buy and raised its earnings forecasts and price target.
- Pinterest committed $4 billion to Amazon Web Services through 2031 to expand the AI infrastructure supporting its search, recommendation, and personalization tools.
- Plus Therapeutics gained after its CNSide Diagnostics laboratory received accreditation from the College of American Pathologists, validating its quality and operational standards.
- Ciena Corporation (NYSE:CIEN) reported better-than-expected quarterly results and raised its 2026 revenue outlook, though shares dropped on concerns about future growth expectations.
- AMC Robotics Corporation made two strategic investments in Etronium AI to gain future equity exposure to the developer of agentic AI frameworks for hardware-focused applications.
- Solidion Technology surged after unveiling a patented battery platform designed to operate in extreme temperatures for space, satellite, and lunar applications.
- Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) fell sharply after AI revenue guidance and its long-term AI growth target failed to meet elevated investor expectations despite strong quarterly results.
- Universal Music Group (AEX:UMG) declined after Pershing Square exited its remaining stake through a private placement valued at more than $1.5 billion.
- PVH Corp. (NYSE:PVH) dropped after lowering its full-year revenue outlook, overshadowing stronger-than-expected first-quarter earnings and sales.
- Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) made a second $250,000 payment toward earning a 29% interest in a Turkish oil concession as it advances seismic exploration plans.
- Five Below (NASDAQ:FIVE) fell even after beating first-quarter expectations and raising full-year guidance, as investors focused on the assumptions behind the outlook.
- Petco Health and Wellness reported a wider-than-expected quarterly loss despite slightly exceeding revenue forecasts, sending shares lower.
1:40pm: CrowdStrike: the 'gold standard'
CrowdStrike Holdings Inc (NASDAQ:CRWD) shares were down around 5.4% on Thursday despite the cybersecurity company posting first-quarter fiscal 2027 results that beat Wall Street estimates across the board and raised its full-year outlook.
Wedbush maintained its outperform rating and raised its price target to $720 from $700, saying the company remains cybersecurity's "golden child" and that investors should buy weakness in the stock.
Wedbush pointed to strong momentum in CrowdStrike's AI-driven product suite, noting that its AIDR platform saw ending ARR grow more than 250% quarter-over-quarter, while Charlotte AI ARR accelerated sequentially. The company also posted record net new ARR from its Cloud, Next-Gen Identity, and Next-Gen SIEM offerings combined.
"We continue to believe that CRWD's position as the gold standard of cybersecurity remains firmly unchanged," Wedbush wrote, adding that the Falcon platform is becoming increasingly critical in what it described as a modern AI threat landscape.
12:15pm: Tech under pressure
Tech equities are under pressure after Broadcom's earnings disappointed investors on Wednesday evening.
“A two-day fall for tech is a rare occurrence these days, but does mark a change from the relentless gains of recent weeks," said IG's Chris Beauchamp.
"May’s brief dip was bought with both hands by investors who had missed out on the April surge, and this one might easily go the same way since there still seems plenty of appetite to pile on board the tech rally.”
11:05am: Broadcom can't satisfy the market's AI appetite
Broadcom shares fell more than 14% after fiscal third-quarter AI revenue guidance and a reiterated 2027 target disappointed a market expecting more.
Bank of America and UBS struck a bullish tone, framing the unchanged outlook as conservatism driven by supply constraints rather than softening demand.
Jefferies was more cautious, calling the print mixed and flagging ongoing gross margin pressure as the custom ASIC business scales.
Baird raised a more pointed concern: Broadcom's largest customer is shifting inferencing work to MediaTek, a competitive threat the firm said would weigh on the stock's valuation multiple even as the longer-term AI revenue trajectory stays intact.
10am: Wall Street opens in different directions
As expected, Wall Street has opened like a family fun day, with everyone heading off in different directions.
The Dow Jones has run up a 1.5% gain, while the Nasdaq has cartwheeled 1% lower, with the S&P 500 dawdling in the sandbox, down less than 0.2%.
Broadcom has started with a 15% fall, followed by 7%-plus falls for Micron, ARM and CrowdStrike.
All but four of the Dow are in green, led by gains for UnitedHealth, Merck and American Express.
8.40am: Dow called higher but Broadcom to drag on Nasdaq
US stocks were expected to head in different directions on Thursday morning, as oil prices retreat but tech earnings overnight disappointed investors.
Dow Jones futures were called 0.8% higher, but the S&P 500 was off 0.4% and Nasdaq futures were down 1.3%.
The latter pair were dragged lower by a near-15% slump in Broadcom after its after-the-close results and a 9% fall for cybersecurity group CrowdStrike in pre-market trading, following earnings the previous evening.
Fashion group PVH, owner of Calvin Klein and Tommy Hilfiger, also plunged 20% after hours after its numbers also missed Wall Street's mark.
The mixed start follows a weaker session on Wall Street overnight, when the Dow led declines, falling 621 points, or 1.2%, to close at 50,687. The S&P 500 shed 56 points, or 0.7%, to 7,554, while the Nasdaq Composite dropped 240 points, or 0.9%, to 26,854. The Russell 2000 dropped 1.3%.
Oil is providing a bright spot for inflation watchers, with WTI crude down almost 4% at $92.44 as traders welcomed signs of easing tensions in the Middle East following a ceasefire agreement between Israel and Lebanon.
Investors are also digesting fresh evidence of a softening US labour market, as Challenger, Gray & Christmas reported 97,006 announced job cuts in May, the highest level for the month since 2020.
The consultancy said artificial intelligence is now the leading reason cited by companies for reducing headcount, particularly across the technology sector.