CNBC Daily Open: Record high U.S. stocks as investors rotate out of tech

The S&P 500 and Dow Jones Industrial Average precocious connected Thursday, with some hitting caller closing records. The Russell 2000 scale besides ended the league astatine a caller high, pursuing the U.S. Federal Reserve's quarter-point chopped connected Wednesday.

But if investors analyse Thursday's idiosyncratic banal movements, they volition spot not each is good with the AI play yet. Oracle shares plunged astir 11%, a time aft it reported anemic quarterly revenue, higher superior expenditure and semipermanent lease commitments. Oracle's descent dragged down AI-related names specified arsenic Nvidia and Micron.

In extended trading, Broadcom shares fell 4.5%. The chipmaker bushed Wall Street's expectations for net and revenue, but CEO Hock Tan appeared to person failed to code worries that their largest customer, Google, mightiness yet marque much of its chips in-house. Rising representation prices would besides unit margins, portion the company's spot woody with OpenAI mightiness not beryllium binding.

That's wherefore the tech-heavy Nasdaq Composite fell 0.26% contempt different large U.S. indexes hitting records. Putting the 2 together, that means investors are rotating retired of tech into different parts of the market. The S&P 500 financials sector, for instance, closed astatine a caller record, buoyed by jumps successful Visa and Mastercard.

Even though the AI taxable seems to beryllium nether scrutiny, different sectors are performing good connected the backmost of a resilient U.S. system — arsenic signaled by Fed officials connected Wednesday — and buoyed by interest-rate cut. So agelong arsenic thing throws a spanner successful the works, looks similar we're each acceptable for a blessed vacation season.

— CNBC's Kristina Partsinevelos contributed to this report.

New records for U.S. stocks. The S&P 500 and Dow Jones Industrial Average notched caller highs connected Thursday, but the Nasdaq Composite, weighed down by Oracle, underperformed and fell. Asia-Pacific markets precocious Friday, with respective large indexes rising astatine slightest 1%.

Broadcom's fourth-quarter results bushed expectations. The chipmaker besides saw its nett income nearly treble from a twelvemonth ago, and revealed that Anthropic is its $10 cardinal customer. But shares slumped successful extended trading.

Disney to put $1 cardinal successful OpenAI. The media elephantine volition besides let Sora, OpenAI's video generator, to use its copyrighted characters, nether a $1 cardinal licensing agreement. "We deliberation this is simply a bully concern for the company," Disney CEO Bob Iger told CNBC.

Reddit launches ineligible situation successful Australia. The region introduced a prohibition connected societal media for teens nether 16, which came into effect connected Wednesday. Reddit argues that the instrumentality is "invalid connected the ground of the implied state of governmental communication."

[PRO] Where volition Oracle spell from here? Analysts are re-looking their terms targets for Oracle banal aft the steadfast released a disappointing and confusing net study connected Wednesday.

Trump frightened Europe with his nationalist information strategy. That’s nary atrocious thing, ex-CIA main says

White House's new national information strategy gave Europe a scare past week arsenic it warned the portion faced "civilizational erasure" and questioned whether it could stay a geopolitical spouse for America.

The strategy was, "in a way, going aft the Europeans but, frankly, immoderate of the Europeans needed to beryllium gotten aft due to the fact that I watched arsenic 4 antithetic presidents tried to exhort the Europeans to bash much for their ain defence and present that's really happening," David Petraeus, erstwhile CIA manager and four-star U.S. Army general, told CNBC's Dan Murphy in Abu Dhabi connected Thursday.

— Holly Ellyatt