Dow Jones Hits Record High Amid Iran Peace Hopes; Chip Stocks Tumble on Broadcom Results

U.S. stock markets experienced a divergent trading session on Thursday, with the Dow Jones Industrial Average surging to a new record closing high. The index climbed 874.86 points, or 1.73%, to finish at 51,561.93, fueled by investor optimism surrounding potential progress toward ending the conflict in Iran.

This positive sentiment was bolstered by news that the U.S. House of Representatives passed a bill aimed at preventing further U.S. military action in Iran. Additionally, a ceasefire agreement between Israel and Lebanon, brokered by the U.S., was seen as a necessary condition for Iran's peace agreement, increasing hopes for a swift resolution to the conflict. However, Hezbollah, a pro-Iranian group, has rejected the ceasefire and refused to withdraw troops from Lebanon.

Despite the Dow's record performance, the technology sector faced headwinds. Chip manufacturer Broadcom's stock plummeted by 12.6% after its revenue fell short of expectations, casting a shadow over the artificial intelligence boom. This downturn impacted other semiconductor stocks, with Arm Holdings dropping over 4%, Micron falling nearly 8%, and AMD declining 3.56%. Nvidia, however, managed a 1.94% gain.

The Nasdaq Composite Index closed down 0.09% at 26,830.96, while the Philadelphia Semiconductor Index saw a more significant drop of 2.15%. The S&P 500 Index edged up by 0.41% to 7,584.31. Taiwan Semiconductor Manufacturing Company's (TSMC) ADR also saw gains, rising 1.88% to $444.92.