Stock market today: Dow jumps 875 points to record high, S&P 500 rebounds after Broadcom stumble
US stocks rose Thursday as the Dow hit a record, gaining about 1.8% (875 points) to a new high, while the S&P 500 added about 0.5% and the Nasdaq was little changed after earlier losses. Broadcom (AVGO) fell more than 12% after its AI chip outlook disappointed. Investors also weighed US jobless claims (225,000) ahead of Friday’s May jobs report.
Near-term downside pressure likely persists as the AI chip outlook reset weighs on expectations.
Broadcom shares sank ~12% after its AI chip forecast disappointed and it reiterated (not raised) 2026 guidance.
Bearish bias for AVGO and AI-chip sentiment into the next sessions.
Background
The piece ties US equity moves to (1) Broadcom’s AI outlook disappointment, (2) geopolitical uncertainty around Iran, (3) labor-market data ahead of the May jobs report, and (4) SpaceX IPO filing/index-fund inclusion expectations.
Why it matters
Most actionable single-name impact is AVGO’s AI chip forecast disappointment, which triggers a sector sell-off and then partial stabilization. Other tickers largely reflect rotation and momentum rather than new company-specific fundamentals.
Market relevance
Equities show a rotation away from semiconductors after AVGO’s AI outlook disappointment, while defensives and select mega-cap tech hold up; crypto sentiment worsened alongside Bitcoin’s drop.
Market effects
AVGO’s AI chip forecast disappointment pressures the whole semiconductor complex, but selective dip-buying appears in memory/storage and some AI-adjacent names.
Primarily US flow-driven rotation (Dow/healthcare/financials) with tech/semis acting as the main drag.
AI-chip expectation reset can influence global supply-chain sentiment and cross-asset risk appetite, including crypto via broader risk mood.
Alternative perspectives
The article shows strong relative strength in NVDA/GOOG and parts of semis (MU/SNDK/MRVL), suggesting the AVGO shock may be overextended and could stabilize quickly.
Index/rotation effects (healthcare/financials bid) and macro prints (jobless claims ahead of jobs report) may be driving much of the tape, making single-name follow-through less reliable.
Key entities
- public_companyBroadcom
AI chip forecast disappointed; shares fell sharply and reiterated 2026 guidance.
- private_companySpaceX
Filed for a record $75B IPO on June 12; index-fund inclusion expectations boosted IPO-related sentiment.
- government_bodyUnited States House of Representatives
Voted to end the war with Iran in a rebuke to Trump, adding geopolitical uncertainty.
- government_agencyDepartment of Labor
Reported weekly jobless claims ticked up to 225,000 for the week ending May 30.
