FINWIRES · TerminalLIVE
FINWIRES

US Equity Indexes Mixed as Sliding Technology Pulls Nasdaq Composite Lower, Crude Oil Sinks

By

US equity indexes were mixed as technology declined amid a broad-based rally, while slumping crude oil futures helped push government bond yields lower.

The Dow Jones Industrial Average jumped 1.7% to 51,561.93, and the S&P 500 climbed 0.4% to 7,584.31. The Nasdaq Composite slipped less than 0.1% to 26,830.96.

All sectors but technology and consumer staples rose. Healthcare and financials were standout gainers, followed by communication services.

Broadcom's (AVGO) decision not to upgrade its 2027 artificial intelligence guidance apparently disappointed investors, especially as the chip designer reported strong semiconductor demand, UBS Securities said in a client note sent Thursday.

Broadcom shares fell almost 13%, among the worst performers in the S&P 500 and the Nasdaq, weighing on the so-called artificial intelligence trade in the tech sector. Shares of Micron Technology (MU), Arm (ARM), and Advanced Micro Devices (AMD) were among the worst performers in a group of companies with a market capitalization of more than $200 billion, according to data compiled by Finviz.

In geopolitical news, Hezbollah on Thursday rejected the latest ceasefire agreement between Israel and the Lebanese government, demanding a complete Israeli withdrawal from Lebanon as more fighting there hampered efforts to end the Iran war, the Associated Press reported.

This comes as the House on Wednesday approved a war powers resolution that would halt US military action against Iran, according to a separate Associated Press report. If the resolution were to pass in the Senate, where 50 of 100 senators have appeared to support it, President Donald Trump would be required to either withdraw troops from Iran or gain approval from Congress for the war, according to an analysis from CNN.

The White House, which has signaled it believes the underlying law is unconstitutional, could try to ignore the resolution, per CNN.

Meanwhile, Tehran and Washington have issued contradictory messages over the status of ceasefire discussions, CNN reported. Trump said Thursday that a deal could be reached "this weekend," while Iran's foreign minister said there's been no "significant process," the news report said.

West Texas Intermediate crude oil futures slumped 3.2% to $92.99, and Brent crude futures dropped 2.7% to $95.17.

US Treasury yields fell, with the 10-year down 1.6 basis points to 4.48% and the two-year lower by 3.9 basis points to 4.05%.

In precious metals, gold futures climbed 0.9% to $4,505.70, and silver futures advanced 0.7% to $74.20.

In US economic news, employers announced 97,006 layoffs in May, the highest for the month since 2020, up 16% from April and 3% from a year earlier, with the shift toward artificial intelligence still the leading reason for cuts, Challenger, Gray & Christmas said Thursday.

"On top of the headline AI story, we're seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy," Andy Challenger, the firm's chief revenue officer, said in a statement. "The labor market is being reshaped by technology in real time."

US initial jobless claims rose to 225,000 in the week ended May 30 from a downwardly revised 212,000 in the previous week, compared with expectations for 215,000 in a survey of analysts compiled by Bloomberg. The four-week moving average jumped by 6,500 to 214,750.

Related Articles

International

New Zealand Property Values Flat in May, Cotality Says

The national median home value in New Zealand held steady in May at NZ$808,187, unchanged from April but down 0.1% over the past three months, according to Cotality's Home Value Index released Thursday.Values were 0.6% lower than a year earlier and remain 17% below the early 2022 peak of NZ$974,002.Among the main centers, Christchurch led monthly gains with a 0.4% rise, while Dunedin and Tauranga each edged up 0.2%, and Hamilton added 0.1%. Auckland and Wellington continued to slide, falling 0.2% and 0.3% respectively."There are differing patterns beneath the surface. Key areas, including Auckland and Wellington, are still subdued, while even 'strong' markets such as Christchurch or Invercargill aren't racing away," saidCotality NZ Chief Property Economist, Kelvin Davidson.Auckland's modest overall decline in May was broad-based, with nearly all sub-markets slipping 0.2% or 0.3%. The exceptions were Rodney, which gained 0.2%, and Franklin, which was unchanged."The longer the OCR stays on hold, the greater the chances inflation is harder to rein back in again, which will tend to put more upwards pressure on mortgage rates," Davidson added.Davidson warned that upward pressure on mortgage rates raises the risk of a more pronounced economic slowdown, which could weigh on household confidence, the labor market, and both property sales and prices."All in all, housing market conditions remain challenging. Having previously anticipated sales volumes rising from around 90,000 in 2025 to 100,000 this year, the market may actually do well to hold at similar levels to last year. This points to a sluggish outlook for values too," Davidson said.

^NZ50
International

Market Chatter: India's Bank Lending Hits Two-Year High as Firms Choose Loans Over Bonds as Financing Sources

Bank lending in India grew 16.2% year-on-year through May 15, marking the fastest pace of growth since June 2024 as companies chose bank loans over bonds, owing to their lower borrowing costs, Bloomberg News reported Thursday.Local bond sales over the same period declined 11% to 10.9 trillion rupees. This could be a result of higher sovereign bond yields because of the U.S.-Iran war, which led the yields to rise 38 basis points to 7.04% since the conflict began, the report said.The higher benchmark bond yields have raised corporate borrowing costs, lowering firms' demand for bonds, despite speculations that the Reserve Bank of India will keep its interest rates steady on Friday, it said.Muthoot Microfin (BOM:544055, NSE:MUTHOOTMF) has moved nearly 50% of its funding to bank loans, lowering borrowing costs by roughly 75 basis points, the company's Chief Executive Officer Sadaf Sayeed said in an interview.State-run power transmission firm Power Grid Corporation of India (BOM:532898, NSE:POWERGRID) also secured a credit facility of up to 40 billion rupees from State Bank of India (NSE:SBIN, BOM:500112), the report said.Shares of Power Grid Corporation of India rose nearly 1% in recent trade, while those of State Bank of India added about 2%.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

BOM:500112BOM:532898BOM:544055NSE:MUTHOOTMFNSE:POWERGRIDNSE:SBIN
International

ANZ Commodity Price Index Rises in May

The ANZ World Commodity Price Index climbed 0.7% month over month in May, with all commodity groups in the index seeing incremental gains, according to a Thursday report from ANZ Research.Over the past year, the index rose 1.3%, with wool jumping more than 75%, aluminum rising over 49%, and beef up more than 25%.Dairy prices slipped 0.1% sequentially during the month and were down over 11% annually, with higher milk powder prices offsetting lower butter prices, per the report. Over the past year, skim milk powder prices were up nearly 26%, while butter prices were down more than 29%.Meanwhile, the meat and fiber index edged 0.4% higher from April. Beef and lamb prices were stabilizing near record-high levels, and wool prices increased 14% month over month. Wool is benefiting from strong demand and low supply, tilting the balance toward higher prices, ANZ said.The horticulture index jumped 3.4% in May, as New Zealand's main produce hit supermarket shelves overseas and early price indications were encouraging.The forestry index was up just 0.6% in the month. In-market log prices jumped roughly 12% since the Middle East conflict started, but these higher prices are going toward higher shipping costs, according to the report.Aluminum prices jumped 1.8% month over month and continued to strengthen due to damaged production facilities in the Persian Gulf, ANZ said. The Middle East accounts for around 8% to 9% of global production, and production out of this region was down 35% from pre-conflict levels.

^NZ50