S&P 500 Up 0.5% as Dow Jumps 1.8% on Broadcom AI Forecast Miss
SPY•S&P 500 rose 0.5% and the Dow jumped 1.8% as investors shifted into healthcare and financials after Broadcom dived 12% on weaker AI guidance. Futures slipped 0.2% before Friday’s jobs report forecasting 80K hires and a 4.3% unemployment rate, as traders weigh Fed policy shifts and geopolitical risks.
1. Market Rally Driven by Sector Rotation
The S&P 500 gained 0.5% while the Dow rose 1.8%, fueled by a shift into healthcare and financial stocks. Investors moved away from semiconductor and hardware names, seeking more stable yields and defensive qualities in the current environment.
2. Broadcom’s AI Guidance Miss Triggers Tech Pullback
Broadcom shares plunged over 12% after the company lowered its AI chip revenue forecast, raising concerns about demand strength. This setback prompted broader tech weakness earlier in the session before markets recovered.
3. Futures and Jobs Report Outlook
S&P 500 futures edged down 0.2% as traders awaited Friday’s May nonfarm payrolls report. Economists project 80,000 jobs added and a 4.3% unemployment rate, forecasts that could influence the Federal Reserve’s next policy decision.
