US equity indices were mixed on Thursday as renewed pressure on the AI sector offset support from a pause in the recent rise in Treasury yields. The S&P 500 fell 0.5% and the Nasdaq 100 lost 1%. Broadcom slumped 15% despite beating earnings estimates, after its AI chip revenue forecast came in below most expectations. The news revived concerns that the surge in AI-related capital expenditure by major US tech firms — a key driver of equity gains in recent quarters — may not be sustainable. CrowdStrike also dropped more than 10% following its earnings release.
Energy prices pared their recent gains amid indications that the US is seeking to reach an agreement with Iran. Treasuries found support as well, helped by the latest data showing an increase in announced job cuts. The Dow Jones Industrial Average rose more than 1%, buoyed by defensive names, with Procter & Gamble and Johnson & Johnson each adding about 2%. Blackstone climbed 1.5%, rebounding from the prior session’s slump even as it became the latest private credit firm to impose caps on investor redemptions.
