AI stocks – Wall Street climbed Thursday after Brent crude fell, but the rally was held back by sharp pullbacks in high-profile AI winners—even as several other companies surged on better-than-expected results.
When the oil market eased, buying returned—at least for a moment. By 12:34 p.m. Eastern time on Thursday. the Dow Jones Industrial Average was up 925 points. or 1.8%. while the S&P 500 added 0.3% after dropping from its all-time high and coming just short of its longest winning streak in three decades. The Nasdaq composite, however, was 0.2% lower, and the reason showed up quickly in technology.
A large share of the market was moving higher: a clear majority of stocks climbed. including 3 out of every 4 in the S&P 500. The lift came from a 2.8% drop in the price of Brent crude oil to $95.10 per barrel. That gave back part of this week’s rise tied to the latest flare-ups of fighting between Iran and the United States and its allies.
On Wall Street. the hope is that the United States and Iran will ultimately agree to reopen the Strait of Hormuz to oil tankers. Investors are looking for what would follow: improved crude flow. a lower oil price. and less upward pressure on inflation hurting the world. Those expectations, paired with strong profit reports from U.S. companies, helped launch the S&P 500 on a nine-day winning streak that ended Wednesday.
Not all gains came from macro hopes. Elanco Animal Health rose 2%, and Zoetis—whose business includes animal vaccines—climbed 3.8%. The move followed expectations for stronger profits after the U.S. Department of Agriculture confirmed Wednesday that the New World screwworm fly has reached south Texas. The finding marks the first time in decades that a parasite with flesh-eating larvae has threatened the nation’s cattle industry.
Toro added 2.1% after the seller of mowers and other equipment delivered better profit and revenue for the latest quarter than analysts expected. CEO Richard Olson said Toro saw strong demand across its products and raised its forecasts for revenue and profit over its full fiscal year.
Still, the day’s mood shifted when attention turned to the AI trade. Broadcom sank 14.7%, even after both profit and revenue surpassed analysts’ expectations. CEO Hock Tan said Broadcom’s AI semiconductor revenue more than doubled to $10.8 billion during the quarter. and he forecast AI semiconductor growth to top 200% in the current quarter.
The selloff took on added weight because the stock began the day with a 38.5% surge for the year so far. Broadcom has grown into Wall Street’s sixth-biggest stock and one of its most influential.
Analysts have been warning that AI stocks may have run too high—too expensive—and that the broader U.S. stock market could be set for a slowdown after nine straight winning weeks for the S&P 500, its longest since 2023. Thursday’s tape reflected that tension: other AI winners also gave back gains.
Micron Technology, which recently saw its total value top $1 trillion because of AI euphoria, fell 6.5%. CrowdStrike Holdings dropped 6.1% even though its profit and revenue for the latest quarter topped analysts’ expectations. CEO George Kurtz said the latest quarter was when “the worlds of cybersecurity and frontier AI collided.” The company also said it is splitting its stock to make its share price more affordable. Even so. the stock entered the day with a 59.5% surge for the year to date. and analysts said it beat forecasts for some financial measures by less than it usually does.
Outside of tech, the losses were just as sharp for companies that also exceeded expectations. PVH Corp. the owner of the Calvin Klein and Tommy Hilfiger brands. tumbled 21.5% despite beating Wall Street’s first-quarter sales and profit targets. CEO Stefan Larsson warned that the company is feeling “the prolonged effects of the Middle East conflict. which is putting pressure on” customers in the region.
The bond market moved in step with oil prices. Treasury yields eased with oil, with the yield on the 10-year Treasury falling to 4.46% from 4.49% late Wednesday. Easier interest rates can take some pressure off stock prices—and the economy more broadly. It can also help smaller companies, because many need to borrow money to grow. Reflecting that, the Russell 2000 index of the smallest U.S. stocks jumped 1.2%.
Economic signals coming out of the United States were mixed. One report said slightly more U.S. workers applied for unemployment benefits last week, which could indicate a slowdown in the relatively solid U.S. job market. Another report said productivity for U.S. workers improved by less during the first three months of the year than economists expected.
Overseas, markets ticked higher in Europe after a weaker finish in Asia. South Korea’s Kospi fell 1.8%, Hong Kong’s Hang Seng dropped 1.5%, and Japan’s Nikkei 225 fell 1.4%.
For investors, the day carried a clear message: oil can steady the broader market, but the performance of AI-linked stocks is still strong enough to control the pace of the rally.
Dow S&P 500 Nasdaq Brent crude Strait of Hormuz Iran United States AI stocks Broadcom Micron CrowdStrike Treasury yields 10-year Treasury Russell 2000 unemployment benefits productivity PVH Zoetis Toro Elanco Animal Health
Wait so AI “slips” but the Dow is up 900? Seems fake lol
Brent crude down and suddenly stocks go up… so basically it’s all just oil doing the steering. Also I don’t trust that Strait of Hormuz stuff, like something bad is always gonna happen.
The article says the Nasdaq is down because of tech pullbacks, but then it also says most stocks climbed. So which is it? I swear these markets always contradict themselves. And why are we talking about a cattle parasite like it affects my paycheck?
Elanco up, Zoetis up, and then oil eases… sounds like random stuff bouncing around. I think the Iran situation is calming down, so investors are hopeful, but also they keep saying “flare-ups” so idk. Still, 925 points is huge, makes me think the economy’s fine. Until next headline I guess.