U.S. stocks traded mixed Thursday morning as investors reassessed the durability of the artificial-intelligence boom while digesting a sharp decline in cryptocurrencies and monitoring developments in the Iran conflict. The Dow Jones Industrial Average rose 545.85 points, or 1.08%, to 51,232.9, while the S&P 500 slipped 17.16 points, or 0.23%, to 7,536.52 and the Nasdaq Composite fell 250.98 points, or 0.93%, to 26,603.0.
The market's dividing line remained technology. Investors have spent much of the past year rewarding companies tied to AI infrastructure, semiconductors and data-center spending, but attention has increasingly shifted toward whether the sector's extraordinary gains can continue. Broadcom's earnings report reflects and reaction to it capture the concern among investors. Shares had rallied from roughly $289 in early April to nearly $490 before earnings. Much of that advance occurred over the previous month as investors extrapolated the blowout results seen from Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), Nvidia (NVDA), and numerous AI infrastructure names. By the time Broadcom reported, investors were no longer looking for a beat. They were looking for a spectacular beat. Instead, they received something closer to a solid beat.
That debate appeared to weigh on the Nasdaq even as the Dow posts substantial gains. The divergence suggested investors were rotating toward more defensive or value-oriented segments of the market while reducing exposure to some of the year's strongest-performing AI beneficiaries.
Risk appetite was further challenged by a sharp selloff in digital assets. Bitcoin fell 5.42% to $63,167.16 after briefly trading near $62,000 overnight. The decline followed broader concerns about leverage and speculative positioning in crypto markets, according to AInvest's analysis. The retreat in Bitcoin added to pressure across high-beta assets and reinforced a more cautious tone among investors.
Meanwhile, the Iran War remians in focus. Investors continue monitoring the latest developments surrounding the Iran conflict, which has become an important driver of commodity and risk markets. Despite those concerns, Brent crude oil fell 2.83% to $95.04, suggesting traders may be reassessing the likelihood of immediate supply disruptions.
Market anxiety nevertheless ticked higher. The CBOE Volatility Index, or VIX, rose 2.05% to 16.39, indicating increased demand for downside protection as investors navigated competing macro and geopolitical risks.
Investors will continue to watch developments in the Iran War, crypto markets and AI-related earnings reports, with attention looking ahead to Friday's U.S. jobs report.