Nine out of 11 sectors were in the green in the DJIA index, with information technology and energy sectors down 2.6% and 0.5%, respectively.
Chip stocks tumbled, with Broadcom falling more than 15% after its decision not to raise AI revenue expectations for fiscal 2026 and 2027 disappointed investors.The VanEck Semiconductor ETF was down about 3%, while the iShares Semiconductor ETF fell 4%.Crude oil prices fell on Thursday, with the U.S. West Texas Intermediate crude futures maturing in July declining 3.48% to hover around $92.68 per barrel.
U.S. equities were split in Thursday morning’s trade as investors rotated out of chip stocks and piled into healthcare, financials, and communication services stocks.
The Dow Jones Industrial Average (DJIA) soared more than 800 points to climb to a 52-week high of 51,502 before paring some of the gains. The S&P 500 index was flat at the time of writing, while the Nasdaq Composite index was down nearly 0.7%.
Nine out of 11 sectors were in the green in the DJIA index, with information technology and energy sectors down 2.6% and 0.5%, respectively.
Healthcare Stocks Soar, Led By UNH
UnitedHealth Group Inc. (UNH) shares were up nearly 6% in Thursday’s opening trade after BofA analyst Kevin Fischbeck upgraded UNH to ‘Buy’ from ‘Neutral’ with a price target of $450, up from $420, according to TheFly. Fischbeck cited improving medical cost trends and supportive near-term data points for his bullish outlook.
Analysts at Morgan Stanley hiked their price target for UNH stock to $453 from $395, while keeping an ‘Overweight’ rating.
The firm stated that managed care stocks have been trending higher amid signs of easing utilization, while AI-driven gains in both revenue and cost efficiency could eventually boost earnings per share (EPS) by an average of 45%.
Johnson & Johnson (JNJ) shares were up more than 2%, while Merck & Co. Inc. (MRK) shares surged about 5%.
Chip Stocks Tumble, AVGO Tanks
Chip stocks tumbled in Thursday’s opening trade, with Broadcom Inc. (AVGO) falling more than 15% after the chipmaker’s decision not to raise AI revenue expectations for fiscal 2026 and 2027 disappointed investors.
Shares of Marvell Technology Inc. (MRVL), Micron Technology Inc. (MU), Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD), and Qualcomm Inc. (QCOM) were down between 1% and 7% at the time of writing.
The VanEck Semiconductor ETF (SMH) was down about 3%, while the iShares Semiconductor ETF (SOXX) fell 4%.
Crude Oil Prices Cool Down
Crude oil prices fell Thursday, with the U.S. West Texas Intermediate (WTI) crude futures maturing in July declining 3.48% to hover around $92.68 per barrel. Brent crude futures expiring in August fell 2.65%, hovering at $95.22 per barrel.
The United States Oil Fund ETF (USO) declined 3%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) was down 4% at the time of writing.
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.08%; the Invesco QQQ Trust ETF (QQQ) fell 1.07%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.25%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bullish’ territory.
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