{"id":5471,"date":"2026-06-04T21:00:36","date_gmt":"2026-06-04T21:00:36","guid":{"rendered":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/06\/04\/dow-hits-record-high-as-investors-rotate-out-of-ai-chip-stocks\/"},"modified":"2026-06-04T21:00:36","modified_gmt":"2026-06-04T21:00:36","slug":"dow-hits-record-high-as-investors-rotate-out-of-ai-chip-stocks","status":"publish","type":"post","link":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/06\/04\/dow-hits-record-high-as-investors-rotate-out-of-ai-chip-stocks\/","title":{"rendered":"Dow hits record high as investors rotate out of AI chip stocks"},"content":{"rendered":"
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The Dow Jones Industrial Average climbed to a record closing high on Thursday as investors shifted money into healthcare and financial stocks, while a broad selloff in semiconductor shares weighed on the technology-heavy Nasdaq Composite.<\/p>\n

The blue-chip index rose 875.09 points, or 1.73%, to close at 51,562.16. <\/p>\n

The S&P 500 gained 0.41% to 7,584.82, while the Nasdaq Composite slipped 0.07% to 26,834.26.<\/p>\n

Market sentiment was supported by signs of progress toward ending the conflict involving Iran, although weakness across artificial intelligence-related stocks kept gains in check.<\/p>\n

Healthcare and financials power the Dow<\/h2>\n

UnitedHealth Group was among the biggest contributors to the Dow’s advance after Bank of America upgraded the healthcare giant to Buy. Shares of UnitedHealth rose more than 5%<\/a>.<\/p>\n

Financial stocks also rebounded after suffering losses in the previous session amid renewed concerns over private credit. <\/p>\n

JPMorgan Chase gained roughly 4%, while Blackstone advanced after the alternative asset manager capped withdrawals<\/a> from its flagship private credit fund following an increase in redemption requests.<\/p>\n

Other non-technology stocks also attracted buyers. Walmart added around 1%, while Costco and Eli Lilly gained more than 1% and 5%, respectively.<\/p>\n

The move reflected what some market participants viewed as an early rotation away from the artificial intelligence trade that has dominated equity markets for much of the year.<\/p>\n

Broadcom earnings spark chip sector pullback<\/h2>\n

The semiconductor sector came under pressure after Broadcom reported fiscal second-quarter revenue that fell short of expectations.<\/p>\n

Broadcom shares tumbled sharply, dragging down other AI-linked names that had been among the market’s strongest performers this year.<\/p>\n

The VanEck Semiconductor ETF declined nearly 2%, while Arm Holdings, Micron Technology, and Qualcomm also lost ground. Marvell Technology managed to post gains despite the broader sector weakness.<\/p>\n

Shares of cybersecurity company CrowdStrike Holdings moved lower <\/a>on Thursday after the company reported higher quarterly operating expenses, weighing on investor sentiment.<\/p>\n

Meanwhile, the investor roadshow for SpaceX officially began ahead of its planned June 12 market debut. <\/p>\n

The company is seeking to raise $75 billion in what would be one of the largest initial public offerings on record, implying a valuation of approximately $1.75 trillion.<\/p>\n

Geopolitics and economic data shape sentiment<\/h2>\n

Investor confidence was also helped by developments surrounding the conflict in the Middle East.<\/p>\n

The US House of Representatives passed a measure on Wednesday that would block President Donald Trump from continuing the war on Iran. <\/p>\n

Meanwhile, a US-mediated ceasefire agreement between Israel and Lebanon raised hopes for a broader regional de-escalation, although the proposal was rejected by Hezbollah.<\/p>\n

A decline in front-month crude oil futures reflected expectations that tanker traffic through the Strait of Hormuz could eventually normalize.<\/p>\n

Economic data released Thursday presented a mixed picture. <\/p>\n

Initial jobless claims unexpectedly rose 6.1%<\/a>, while first-quarter labor costs and productivity were revised lower. <\/p>\n

Separately, a report from Challenger, Gray & Christmas showed announced layoffs by US employers increased 11% in May to 97,006<\/a>, with nearly 40% of those reductions attributed to artificial intelligence.<\/p>\n

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The post Dow hits record high as investors rotate out of AI chip stocks<\/a> appeared first on Invezz<\/a><\/p>\n

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The Dow Jones Industrial Average climbed to a record closing high on Thursday as investors shifted money into healthcare and financial stocks, while a broad selloff in semiconductor shares weighed on the technology-heavy Nasdaq Composite. The blue-chip index rose 875.09 points, or 1.73%, to close at 51,562.16. The S&P 500 gained 0.41% to 7,584.82, while […]<\/p>\n","protected":false},"author":1,"featured_media":5472,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/5471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/comments?post=5471"}],"version-history":[{"count":0,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/5471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media\/5472"}],"wp:attachment":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media?parent=5471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/categories?post=5471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/tags?post=5471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}