- The S&P 500 and Dow Jones Industrial Average notched fresh highs.
- Disney to invest $1 billion in OpenAI and will license the startup its characters.
- SpaceX will launch IPO in 2026, Elon Musk confirmed.
- Broadcom’s fourth-quarter results beat expectations, but shares slumped in extended trading.
- Analysts are re-looking their price targets for Oracle stock.
The S&P 500 and Dow Jones Industrial Average advanced on Thursday, with both hitting fresh closing records. The Russell 2000 index also ended the session at a new high, following the U.S. Federal Reserve’s quarter-point cut on Wednesday.
But if investors analyze Thursday’s individual stock movements, they will see not all is well with the AI play yet. Oracle shares plunged nearly 11% after reporting on Wednesday weak quarterly revenue, dragging down AI-related names such as Nvidia and Micron.
In extended trading, Broadcom shares fell 4.5%. The chipmaker beat Wall Street’s expectations for earnings and revenue, but CEO Hock Tan appeared to have failed to address worries that their largest customer, Google, might eventually make more of its chips in-house. Rising memory prices would also pressure margins, while the company’s chip deal with OpenAI might not be binding.
That’s why the tech-heavy Nasdaq Composite fell 0.26% despite other major U.S. indexes hitting records. Putting the two together, that means investors are rotating out of tech into other parts of the market. The S&P 500 financials sector, for instance, closed at a fresh record, buoyed by jumps in Visa and Mastercard.
Even though the AI theme seems to be under scrutiny, other sectors are performing well on the back of a resilient U.S. economy — as signaled by Fed officials on Wednesday — and buoyed by interest-rate cut. So long as nothing throws a spanner in the works, looks like we’re all set for a happy holiday season.
— CNBC’s Kristina Partsinevelos contributed to this report.
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