US stock indices closed with mixed results on Thursday, with the Dow Jones Industrial Average surging to a new all-time high. The Nasdaq was dragged lower by a sharp decline in Broadcom (AVGO) shares.
At the close, the Dow Jones had gained 874.86 points, or 1.73%, to finish at 51,561.93. The Nasdaq Composite fell 23.02 points, or 0.09%, settling at 26,830.96. The S&P 500 index added 30.63 points, or 0.41%, closing at 7,584.32.
Shares of NVIDIA (NVDA) rose nearly 2%, while Micron Technology (MU) shares fell 7.7%. Broadcom (AVGO) shares dropped more than 12%. The Nasdaq Golden Dragon China Index closed 0.6% lower, with shares of XPeng (XPEV) declining 3.5%.
In European markets, Germany's DAX 30 index rose 140.84 points, or 0.57%, to close at 24,952.47. The UK's FTSE 100 gained 25.32 points, or 0.25%, to end at 10,357.62. France's CAC 40 advanced 93.87 points, or 1.15%, to finish at 8,244.29. The Euro Stoxx 50 index added 51.83 points, or 0.86%, closing at 6,105.40. Spain's IBEX 35 rose 102.93 points, or 0.57%, to 18,278.93. Italy's FTSE MIB gained 149.34 points, or 0.30%, settling at 50,187.50.
In Asia, Japan's Nikkei 225 index fell 1.36%, while South Korea's KOSPI dropped 1.84%. India's Sensex index saw a slight gain.
The US Dollar Index, which measures the dollar against a basket of six major currencies, fell 0.11% to settle at 99.419. In late New York trading, one euro was worth $1.1614, up from $1.1598 in the previous session. One British pound was worth $1.3425, up from $1.3416. One US dollar bought 160.02 Japanese yen, down from 160.03. It also traded at 0.7892 Swiss francs, down from 0.7924, and at 1.3899 Canadian dollars, up from 1.3895. One dollar was worth 9.3737 Swedish kronor, down from 9.4065.
In the cryptocurrency market, Bitcoin fell over 2.5% to $63,261. Ethereum dropped more than 3.8% to $1,760.
In the oil market, the price of West Texas Intermediate crude for July delivery fell $2.98 to settle at $93.04 per barrel, a decline of 3.10%. Brent crude for August delivery fell $2.78 to close at $95.03 per barrel, down 2.84%.
Spot gold rose approximately 0.7% to $4,475.67 per ounce. Spot silver was at $73.871 per ounce.
Key Economic Updates
The Federal Reserve Bank of Boston stated that a conflict involving Iran would likely have a limited impact on the US labor market. The bank's research suggests that while inflation costs from an oil shock similar to those in the 1970s remain, the risks to employment appear far lower than 50 years ago. The structure of the current US economy differs from previous energy crises, enabling it to absorb such a shock with significantly less damage to national employment. Economists noted that the challenge for monetary policy from oil shocks may now be smaller, allowing policymakers to focus more on broader inflation risks.
US mortgage rates edged lower last week as sellers struggled to find buyers willing to accept their offers. According to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 6.48% from 6.53%. A year ago, the rate was 6.85%. The ongoing economic uncertainty is putting pressure on the housing market during the peak selling season.
AI company Anthropic has called for a global consideration of slowing the pace of frontier AI development. The company warned that AI systems are advancing so rapidly they may soon achieve recursive self-improvement without human intervention, a capability that could pose significant societal risks. It proposed a global agreement to potentially decelerate AI development and establish a verification mechanism.
US initial jobless claims rose to 225,000 for the week ending May 30, higher than the expected 213,000 and the previous week's revised figure of 212,000. This marks the highest level since early February. The four-week moving average increased to 214,750 from 208,250. Continuing claims dipped slightly to 1.777 million.
US stock index futures were mixed pre-market, with Dow futures up 1%, S&P 500 futures down 0.22%, and Nasdaq futures down over 1%. US Treasury yields declined. The yield on the 2-year note fell 4.5 basis points to 4.039%. The 10-year yield dropped 3.8 basis points to 4.455%, and the 30-year yield fell 3.0 basis points to 4.960%.
Company-Specific News
Goldman Sachs estimates that revenue from the AI division of SpaceX could surge 100-fold over five years, a key assumption underpinning the company's reported $1.78 trillion IPO valuation. The bank projects the division's revenue to grow from $3.2 billion in 2025 to $322 billion by 2030, while SpaceX's total revenue is expected to rise from $18.7 billion to $474 billion over the same period. The prospectus shows the xAI unit recorded a $6.4 billion loss in 2025. Goldman also forecasts the AI division's revenue to grow 388% year-over-year in 2026 to $15.6 billion, reaching $34.5 billion in 2027. Revenue from the Starlink and rocket businesses is projected to reach $144 billion and $8.3 billion, respectively, by 2030.
Analyst Actions
Truist Securities raised its price target for Broadcom (AVGO) to $550 from $545.
Comments