Wall Street ended Thursday with mixed results as tech stocks declined while other sectors gained. The Dow Jones Industrial Average rose 1.1 percent to 51,220.18, but the S&P 500 fell 0.2 percent to 51,220.18. The Nasdaq Composite dropped 0.9 percent, closing at 26,631.02.
The downturn in tech shares followed a weaker-than-expected earnings report from semiconductor company Broadcom. Its stock fell 14.4 percent after markets opened. Analyst Patrick O'Hare of Briefing.com said the results "failed to live up to the sky-high expectations embedded in the stock price."
Other tech firms also saw losses. Arm Holdings dropped 6.1 percent, while Micron declined 6.3 percent. O'Hare described the shift as a rotation from high-performing tech stocks into more stable, traditional blue-chip companies.
Meanwhile, tensions in the Middle East continued to influence market sentiment. The war, which began with US-Israeli strikes on Iran on February 28, remains ongoing. Iran claimed Thursday that the US and Israel had suffered a "decisive blow," adding there had been "no tangible progress" in peace talks. Tehran's blockade of the Strait of Hormuz has disrupted energy and fertilizer transit, pushing oil prices higher.
Art Hogan of B. Riley Wealth Management told AFP the market's pause is "normal" and possibly beneficial. He noted that investors are cautiously watching for signs of resolution in the conflict, which could affect inflation and economic growth.
Elsewhere, SpaceX, the rocket and satellite company led by Elon Musk, announced Wednesday it plans to raise about $75 billion through an initial public offering. Hogan said it remains unclear how much of the offering the market will absorb.
Broadcom's steep drop after failing to meet inflated expectations exposes how fragile investor confidence in tech giants can be. While the Dow rose, the Nasdaq's fall signals a shift in market trust away from high-flying stocks. The ongoing Middle East conflict adds pressure, with Iran's blockade of the Strait of Hormuz directly affecting global energy flows. SpaceX's $75 billion IPO plan now enters a less forgiving financial climate.
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