Wall Street buoyed investor sentiment Thursday on progress toward an end to the Iran war, while disappointing results from Broadcom led to a chip selloff that kept the Nasdaq’s gains in check.

The blue-chip Dow rose, closing at record highs with a boost from healthcare and financial stocks.

The S&P 500 posted more muted gains, while the Nasdaq ended essentially unchanged. Chipmaker Broadcom missed revenue expectations, sending its shares tumbling and casting a pall over the AI ​​giant, which has boosted chip stocks so far this year.

“The only downside in the market right now is Broadcom, and I think investors are buying the dip,” said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois. “I don’t think investors have given up the chips yet, but what they have yet to grasp is, ‘Is this real? Is this valuation legitimate?’ I’m not sure yet that investors have really questioned that.” The US House of Representatives on Wednesday passed a measure that would block President Donald Trump from continuing the war against Iran. Additionally, a US-brokered ceasefire agreement between Israel and Lebanon, an essential condition of Iran’s agreement to a peace deal, has fueled optimism for a near-term resolution to the war. But the ceasefire was rejected by pro-Iranian Hezbollah, which said it would not withdraw troops from Lebanon.

The decline in front-month crude futures reflected hopes that tanker traffic through the crucial Strait of Hormuz could soon resume.

“How many deals do we have? It’s always just around the corner, a corner we’ve yet to get to,” added Nolte. “Things are moving forward, but are they moving at a pace that allows the world to get back to normal in a few weeks, a few months or maybe sometime next year?”

On the economic front, initial jobless claims unexpectedly rose 6.1%, and first-quarter labor costs and productivity fell sharply. A report by Challenger, Gray and Christmas showed that layoffs announced by US corporations rose 11% to 97,006 in May. About 40% of those layoffs were attributed to AI.

According to preliminary data, the S&P 500 rose 31.14 points, or 0.41%, to close at 7,584.82, while the Nasdaq Composite fell 19.72 points, or 0.07%, to 26,834.26. The Dow Jones Industrial Average rose 875.09 points, or 1.73%, to 51,562.16.

Chipmaker Marvell Technology gained, while Advanced Micro Devices, Micron Technology and Qualcomm lost ground on the day.

The healthcare sector got a boost from UnitedHealth after Bank of America raised its rating on the healthcare conglomerate’s shares to “buy”.

The financial index’s rebound followed a sharp sell-off in the previous session on concerns over private credit. Shares in Blackstone advanced after it became the latest asset manager to cap withdrawals from its flagship private credit fund as redemption requests surged. Cybersecurity firm CrowdStrike fell after reporting an increase in quarterly operating expenses. An investor roadshow for Elon Musk-led SpaceX began on Thursday ahead of its June 12 market debut. It aims to raise $75 billion in a record IPO that would value it at $1.75 trillion.