Jornal Do Brasilia - Oil drops, stocks mostly higher despite AI concerns

Iran reported "no tangible progress" in negotiations on ending the war, even as the US House of Representatives passed a resolution seeking to halt American military action in Iran.

Israel meanwhile struck south Lebanon and threatened new attacks on Beirut despite an announcement hours earlier that the opposing sides had agreed to implement a conditional ceasefire.

Elsewhere, a disappointing forecast by chip giant Broadcom stoked concerns about AI stock valuations, which have soared in recent months and helped push equity indexes to record highs.

Broadcom's stock plunged around 14 percent, "reviving doubts about the actual growth rates for artificial intelligence", said John Plassard at Cite Gestion.

While Broadcom and other AI stocks weighed down the Nasdaq, the Dow set a fresh record high in morning trading.

"The disparate moves reflect a rotation away from the leading tech stocks and into the lower-beta, more traditional blue-chip shares," said Patrick O'Hare at Briefing.com.

Investors also braced for a coming IPO by Elon Musk's SpaceX, the rockets-to-AI behemoth that is aiming to raise $75 billion in the biggest initial share sale ever.

SpaceX said in a regulatory filing that it would offer over 550 million shares at $135 each next week, which could value the company at a whopping $1.8 trillion.

"Investors will be mindful of the extraordinary gains made in semiconductors over the past two months, and the upcoming SpaceX IPO which is sure to suck some money out of outperforming stocks," said David Morrison, senior market analyst at Trade Nation.

- US jobs boost -

Investors are also waiting for a US jobs report due on Friday to get a reading of the performance of the economy. A separate report this week showed that despite rising energy prices, companies in the world's biggest economy in May added the most jobs since the start of 2025.

The dollar fell against main rivals after recent gains thanks to its safe-haven status and expectations that the Fed could raise US interest rates to combat higher inflation.

However, the greenback still managed to push Indonesia's rupiah to a record low against the currency, with the Asian country stung by surging energy costs and as its lawmakers passed a bill expanding oversight of the central bank that raised concerns over its independence.

Bitcoin flirted with its lowest levels since October 2024, just before the election of Donald Trump, which helped propel the world's leading cryptocurrency to fresh record highs.

Bitcoin "has suddenly started looking less attractive" compared to AI stocks which have soared in recent months, said Swissquote analyst Ipek Ozkardeskaya.

"They have delivered higher returns than Bitcoin while benefiting from actual earnings growth that justifies at least part of their price gains, also explaining the deteriorating interest in harder-to-price cryptocurrencies," she said.

Bitcoin fell under $64,000 in Thursday trading. It has not fallen under $60,000 since October 2024.

- Key figures at around 1530 GMT -

Brent North Sea Crude: DOWN 2.9 percent at $94.99 a barrel

West Texas Intermediate: DOWN 3.3 percent at $92.82 a barrel

New York - DOW: UP 1.8 percent at 51,578.03 points

New York - S&P 500: UP 0.3 percent at 7,573.31

New York - Nasdaq: DOWN 0.2 percent at 26,797.50

London - FTSE 100: UP 0.3 percent at 10,360.32 (close)

Paris - CAC 40: UP 1.2 percent at 8,244.29 (close)

Frankfurt - DAX: UP 0.6 percent at 24,944.95 (close)

Tokyo - Nikkei 225: DOWN 1.4 percent at 67,470.69 (close)

Hong Kong - Hang Seng Index: DOWN 1.5 percent at 25,253.40 (close)

Shanghai - Composite: DOWN 0.6 percent at 4,057.78 (close)

Euro/dollar: UP at $1.1626 from $1.1599 on Wednesday

Pound/dollar: UP at $1.3436 from $1.3420

Dollar/yen: DOWN at 159.99 yen from 160.07 yen

Euro/pound: UP at 86.52 pence from 86.43 pence

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L. Dias--JDB