Live Nasdaq Composite: Semiconductor Stumble Tests the Market’s AI Conviction

Live Updates

Jobless Claims Rise in Holiday-Shortened Week

49 minutes ago

Live

Weekly jobless claims climbed to 225,000 in the week ending May 30, a rise of 13,000 from the prior week and the highest reading since February, according to Labor Department data. The increase came in above the 215,000 economist consensus, though the Memorial Day holiday may have introduced seasonal volatility that partially accounts for the uptick.

This article will be updated throughout the day, so check back often for more daily updates. 

The Nasdaq Composite is bearing the brunt of today’s selling, shedding 1% as a earnings print from Broadcom rattled the chip sector. The S&P 500 slipped 0.4%, though the Dow bucked the trend in a notable display of divergence, climbing 526 points, or 1.1%, as money rotated out of high-multiple tech names and into more traditional areas of the market.

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) was the session’s drag, tumbling more than 14% despite reporting revenue of $22.19 billion, a 48% year-over-year gain that narrowly cleared the $22.13 billion estimate. AI semiconductor revenue more than doubled to $10.8 billion, which under normal circumstances would command a positive reaction. Instead, the stock absorbed one of its sharpest single-day declines in recent memory as guidance failed to clear the bar some investors had set, and concerns over competition and margin trajectory overshadowed what was, on paper, a better-than-expected quarter.

Cybersecurity stock CrowdStrike (NASDAQ:CRWD) compounded the pressure with a 10% decline despite beating earnings estimates. Siebert Financial CEO Mark Malek said, “The stock ran hard into the print on AI-security enthusiasm, and when a name is priced to perfection like this, even a strong quarter can get sold on the news.”

Here’s a look at where things stand as of morning trading:

Dow Jones Industrial Average: 51,400 Up 1.40%
Nasdaq Composite: 26,603 Down 0.93%
S&P 500: 7,541 Down 0.15%

Market Movers

TSMC (NYSE:TSM) CEO C.C. Wei warned Thursday that global chip supply will fall short of AI-driven demand for years, adding that the company still cannot fully satisfy its U.S. customer base even as new domestic capacity comes online. TSMC held firm on its forecast for more than 30% sales growth this year, with capital expenditures tracking toward the high end of its $56 billion range.

CrowdStrike (NASDAQ:CRWD) delivered a strong quarterly report, posting a 51% year-over-year earnings beat alongside revenue growth of 26% that also cleared expectations. Management guided for net new ARR growth of 27% to 29% year over year by year-end, signaling confidence in the company’s demand pipeline heading into the back half of the year. CrowdStrike also announced a 4-for-1 stock split.

Amazon (NASDAQ:AMZN) announced its global fleet of electric delivery vans has surpassed 50,000 vehicles, a milestone that reflects the e-commerce giant’s ongoing effort to decarbonize its last-mile delivery network.

Apple (NASDAQ:AAPL) is tapping Google’s Nvidia-powered chips to run the overhauled version of Siri set to debut in September, a notable partnership that puts two of the world’s most valuable companies on the same silicon for one of the year’s most anticipated AI product launches.