U.S. stocks hit record highs as investors move away from tech industry

of S&P500 and Dow Jones Industrial Average Both teams set new final records on Thursday. of russell 2000 The index also closed at a new high following Wednesday’s quarter-point interest rate cut by the Federal Reserve.

But as investors analyze the performance of individual stocks on Thursday, they will see that not all AI efforts are working yet. oracle The company’s stock price plunged nearly 11% a day after reporting weak quarterly sales, increased capital spending and long-term lease agreements. Oracle’s slides dragged down AI-related names, including: Nvidia and micron.

In extended trading, broadcom The stock price fell 4.5%. The chipmaker beat Wall Street expectations for profits and revenue, but CEO Hock Tan appeared unable to address the concerns of the company’s biggest customer. googleand may eventually manufacture more chips in-house. Rising memory prices will also weigh on margins, and the company’s chip deal with OpenAI may not be binding.

That’s why we emphasize technology Nasdaq Composite It fell 0.26% even as other major U.S. indexes set new records. The combination of the two means investors are shifting away from the technology sector and into other areas of the market. For example, the S&P 500 financial sector closed at a new record, buoyed by a sharp rally. visa and master card.

While the AI ​​topic appears to be under scrutiny, other sectors are doing well on the back of a resilient U.S. economy and supported by interest rate cuts, as Fed officials suggested on Wednesday. Barring anything else, it looks like we’re all set for a joyous holiday season.

—CNBC’s Kristina Partinevelos contributed to this report.

New record for US stocks. On Thursday, the S&P 500 and Dow Jones Industrial Average hit record highs, but the Nasdaq Composite Index underperformed and fell, weighed down by Oracle. Asia-Pacific markets rose on Friday, with several major indexes up at least 1%.

Broadcom’s fourth-quarter results exceeded expectations. The company also revealed that its net income nearly doubled compared to a year ago and that Anthropic is its $10 billion customer. However, the stock price fell in extended trading.

Disney to invest $1 billion in OpenAI. The media giant will also allow OpenAI’s video generator Sora to use its copyrighted characters under a $1 billion licensing agreement. “I think this is a good investment for the company.” disney CEO Bob Iger told CNBC.

Reddit launches legal challenge in Australia. The county introduced a social media ban for youth under 16, which went into effect Wednesday. Reddit claims the law is “null and void based on the implied freedom of political communication.”

(PRO) Where does Oracle go from here? Analysts are reconsidering their price targets for Oracle stock after the company released a disappointing and confusing earnings report on Wednesday.

President Trump scared Europe with his national security strategy. That’s not a bad thing, says former CIA director.

The White House’s new national security strategy sparked fear in Europe last week, warning that the region faces “annihilation of civilization” and questioning whether it can remain a geopolitical partner of the United States.

The strategy was “in some ways aimed at the Europeans. But frankly, some of the Europeans had to play catch up, because I’ve seen four different presidents try to encourage the Europeans to do more to defend themselves, and now that’s actually happening,” David Petraeus, a former CIA director and four-star Army general, told CNBC’s Dan Murphy in Abu Dhabi on Thursday.

— Holly Ellyatt