U.S. stocks ended mostly higher on Thursday, with the Dow hitting a fresh all-time closing high, as investors closely watched developments toward ending the Iran war. However, a massive tech selloff dragged down the Nasdaq.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.7%, or 874.86 points, to close at 51,561.93 points.
The S&P 500 gained 0.4%, or 30.63 points, to end at 7,584.31 points. Healthcare and financial stocks were the biggest gainers.
The Health Care Select Sector SPDR (XLV) added 3.1%. The Financials Select Sector SPDR (XLF) gained 2.6%. The Information Technology Select Sector SPDR (XLK) lost 1.6%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq declined 0.1%, or 23.02 points, to finish at 26,830.96 points.
The fear gauge, CBOE Volatility Index (VIX), was down 4.11% to 15.49. Advancers outnumbered decliners on the NYSE by a 2.19-to-1 ratio. On the Nasdaq, a 1.83-1 ratio favored advancing issues. A total of 18.77 billion shares were traded on Thursday, lower than the last 20-session average of 20.11 billion.
On the Nasdaq, there were 100 new highs and 92 new lows. On the S&P 500, there were 24 new 52-week highs and 11 new lows.
Investors Dump Tech Stocks
Investors rotated out of tech stocks to take refuge in blue-chip assets. Healthcare and financial stocks were the biggest gainers on Thursday, with shares of UnitedHealth Group Incorporated (UNH) jumping 5.2%. UnitedHealth boosted the Dow’s advance, with the index closing at a fresh all-time high.
Other stocks like JPMorgan Chase & Co. (JPM) also helped the blue-chip index’s rally. Shares of JPMorgan rose 3.3%. JPM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dow’s surge came as investors rotated out of tech stocks, led by a massive sell-off in Broadcom, Inc. (AVGO). The chip giant’s shares plunged 12.6% after it failed to impress investors despite beating on earnings and dampened the enthusiasm surrounding the AI-driven market rally.
Other semiconductor stocks responsible for the AI enthusiasm and the market rally also suffered on Thursday. Shares of Micron Technology, Inc. (MU) fell 7.7%.
Investors also closely watched developments toward U.S.-Iran negotiations. Tensions intensified in the Middle East earlier this week, with no positive developments toward ending the Iran war. On Wednesday, the House of Representatives approved a resolution aimed at preventing President Donald Trump from continuing military operations against Iran.
Economic Data
The Labor Department reported that jobless claims totaled 225,000 for the week ending May 30, an increase of 13,000 from the previous week’s revised level of 212,000. The four-week moving average was 214,750, an increase of 6,500 from the previous week’s revised average of 208,250.
Continuing claims came in at 1,777,000, a decrease of 8,000 from the previous week’s revised level of 1,776,000. The 4-week moving average was 1,785,000, an increase of 4,750 from the previous week’s revised average of 1,772,500.
Nonfarm productivity grew 0.3% in the first quarter, a larger-than-expected downward revision from the initial estimate of 0.8% growth, the Bureau of Labor Statistics reported.
Unit labor costs increased at a 1.8% rate in the first quarter of 2026. That marked a downward revision from the 2.3% growth rate reported last month.
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