Dow reaches record high as Broadcom slump drags chip sector

U.S. stock markets experienced a sharp divergence on Thursday, with the Dow Jones Industrial Average surging to a record high while technology and semiconductor stocks sold off sharply. The Dow closed up approximately 1.35 percent, a gain of over 680 points, with financial, healthcare, and industrial stocks leading the advance.

The rally in the blue-chip index contrasted with significant weakness in the technology-heavy Nasdaq Composite, which declined. The split was driven by a dramatic selloff in semiconductor shares, triggered by a disappointing revenue forecast from chipmaker Broadcom. Following its earnings report, Broadcom’s stock fell roughly 14 percent, dragging down the broader chip sector. The iShares Semiconductor ETF dropped over 4 percent, and other chip manufacturers, including Micron Technology, also posted notable declines.

Market analysts described the action as a pronounced sector rotation, with investors moving money out of high-growth technology and artificial intelligence names that had led the market higher and into more traditional sectors such as financials, healthcare, and industrials. Within the Dow, UnitedHealth, JPMorgan Chase, and Goldman Sachs were...