CNBC Daily Open: U.S. stocks hit records despite AI-led tech slide

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% aft reporting connected Wednesday weak quarterly revenue, dragging 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. The pan-European Stoxx 600 closed 0.5% higher.

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.

SpaceX volition motorboat IPO successful 2026. Elon Musk confirmed the quality successful a post connected X, which follows aggregate articles past week astir the firm's plans to spell public. Musk said implicit the play that reports of SpaceX's $800 billion valuation were "not accurate." 

Broadcom's fourth-quarter results bushed expectations. The chipmaker besides saw its nett income nearly treble from a twelvemonth ago, and issued a beardown forecast for the existent 4th connected the backmost of AI demand. But shares slumped successful extended trading.

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

India's $3.3 trillion accidental for planetary money houses

This year, the world's largest money house, BlackRock, launched aggregate communal money schemes successful India done Jio BlackRock, marking the U.S. firm's reentry aft its exit successful 2018. The world's 4th largest plus manager, State Street, is reportedly looking to bargain a involvement successful an Indian money house.

Accelerating financialization of Indian household savings is driving flows: arsenic much retail investors enactment successful superior markets, the opportunities for plus managers to grip those funds are ballooning.

— Priyanka Salve