that.U.S. Stocks Hit Record Highs as Investors Shift Away from Tech

The S&P 500 and Dow Jones Industrial Average both closed Thursday at record highs. The Russell 2000 also topped its previous peak, buoyed by the Federal Reserve’s quarter‑point rate cut on Wednesday.

Yet a closer look at individual stocks reveals that the AI rally is showing signs of strain. Oracle saw its shares plunge almost 11% after reporting weaker‑than‑expected quarterly revenue, a surge in capital spending and a steep rise in long‑term lease commitments aimed at meeting AI demand. The drop in Oracle dragged down other AI‑linked names, notably Nvidia and Micron.

In after‑hours trading, Broadcom slipped 4.5% despite beating earnings and revenue expectations. While the chipmaker posted a near‑double net income year‑over‑year, chief executive Hock Tan did not allay concerns that its biggest customer, Google, could shift more production in‑house. Additionally, rising memory prices threaten margin expansion, and Broadcom’s multi‑year chip supply agreement with OpenAI remains non‑binding.

These pressures helped the tech‑heavy Nasdaq Composite decline 0.26% even as other major U.S. indexes set new records. The move suggests a sector rotation away from pure‑play technology stocks toward more defensive areas. The S&P 500 financials sector, for example, posted a fresh high, driven by strong gains in payment processors Visa and Mastercard.

Although AI‑centric stocks are under heightened scrutiny, the broader market continues to benefit from a resilient U.S. economy and the recent interest‑rate cut. Barring any unexpected shocks, the outlook remains positive heading into the holiday season.

U.S. equity markets hit fresh milestones. The S&P 500 and Dow Jones Industrial Average reached all‑time highs on Thursday, while the Nasdaq lagged due to weakness in AI‑related shares.

Broadcom’s Q4 results exceed forecasts. The chipmaker nearly doubled net income YoY and disclosed a $10 billion contract with Anthropic, yet its stock fell in extended trading.

Disney invests $1 billion in OpenAI. The media conglomerate will license its iconic characters to OpenAI’s video‑generation tool, Sora, under a decade‑long agreement, a move the company believes will drive long‑term growth.

Reddit challenges Australia’s teen‑social‑media ban. The platform argues that the new law infringes on the implied freedom of political communication, setting up a potential high‑court showdown.

Analysts reassess Oracle’s outlook. Following a disappointing earnings release, several Wall Street houses are revising price targets as they grapple with the company’s shifting AI strategy.

Trump’s national security strategy unsettles Europe, says former CIA chief. The new U.S. policy warned of “civilizational erasure” in Europe and questioned the continent’s future as a strategic partner. Former CIA director and four‑star general David Petraeus told CNBC that the warning may be harsh but reflects long‑standing European defense shortfalls.