US Stocks Mixed as AI Concerns Weigh on Tech Shares While Dow Advances

U.S. equity markets closed mixed on Thursday as renewed concerns surrounding artificial intelligence spending weighed on technology stocks, offsetting support from easing Treasury yields and signs of a cooling labor market.

The S&P 500 fell 0.5%, while the Nasdaq 100 declined 1%, pressured by losses among major technology and semiconductor companies. The Dow Jones Industrial Average outperformed, gaining more than 1% as investors rotated into defensive sectors.

Shares of Broadcom fell 15% despite reporting earnings that exceeded Wall Street expectations. Investors focused instead on the company’s outlook for artificial intelligence chip revenue, which came in below some market forecasts. The reaction renewed questions about whether the rapid pace of AI-related capital expenditures by the largest U.S. corporations can be sustained in the coming quarters.

Cybersecurity company CrowdStrike also came under pressure, falling more than 10% following its latest earnings report.

Meanwhile, Treasury markets found support after fresh labor market data showed an increase in announced job cuts, reinforcing expectations that economic growth may be moderating. Lower bond yields provided some relief to broader financial conditions.

Energy prices also pared gains from previous sessions after reports suggested the United States is exploring diplomatic efforts aimed at reaching a new agreement with Iran, a development that could potentially ease concerns over global energy supply.

Defensive stocks helped lift the Dow, with shares of Procter & Gamble and Johnson & Johnson each rising about 2%. Alternative asset manager Blackstone gained 1.5%, recovering from losses recorded in the previous session despite becoming the latest private credit firm to impose limits on investor withdrawals.

The session highlighted the growing divergence within U.S. equity markets, as investors balanced optimism surrounding artificial intelligence against concerns over valuations, spending sustainability, and broader economic conditions.