As has been the case since early 2026, the market continued to focus on Iran and AI. While the U.S.-Iran situation brought additional concerns as geopolitical talks appeared to have stalled, AI remained at the center of today’s market action. Unlike in prior days, however, today’s market saw momentum behind the AI investment thesis cool. A disappointing revenue forecast from Broadcom, the world’s leading custom chip designer, led investors to question whether the market has priced in too much growth in the AI infrastructure segment. Broadcom stock ended the day down more than 12%, and many other semiconductor stocks also came under pressure. Nevertheless, today’s market reflected a rotation rather than a broad-based selloff, with most stocks posting significant gains.
The Dow Jones Industrial Average emerged as the day’s top-performing major index as good old-fashioned blue-chip stocks outperformed AI-related names. The index gained 875 points to close at 51,562, setting a new record high. The NASDAQ ended the day down 0.09% at 26,831, while the S&P 500 rose 0.41% to 7,584. The technology sector lost 1.56% in value, whereas many other sectors posted significant gains, led by healthcare, which advanced more than 3%.
The bond market also calmed, with the 5-year U.S. Treasury yield falling 3 basis points to 4.19% and the 10-year Treasury yield declining 2 basis points to 4.48%.
Economic data continued to point to a stable labor market, with jobless claims remaining at a level similar to last week. Although first-quarter labor productivity was revised downward, it continued to grow at a pace that remains strong by historical standards.
The employment report will be released tomorrow, an important data point for the Federal Reserve as it directly measures one side of its dual mandate. Adams Wealth Advisors will continue to keep you updated.