Stocks
Dow Surges 800 Points as Healthcare Stocks Soar, Chip Stocks Tumble
The Dow Jones Industrial Average (DJIA) jumped over 800 points to reach a 52-week high of 51,502 on Thursday.
This significant surge was driven by gains in healthcare stocks, which saw shares of UnitedHealth Group Inc. (UNH), Johnson & Johnson (JNJ), and Merck & Co. Inc. (MRK) rise by 6%, 2%, and 5% respectively.
Analysts at Morgan Stanley upgraded UNH to 'Buy' from 'Neutral' with a price target of $453, citing improving medical cost trends and supportive near-term data points.
However, the sector's gain was partially offset by declines in chip stocks, which saw Broadcom Inc. (AVGO) fall over 15% after disappointing investors with its decision not to raise AI revenue expectations for fiscal 2026 and 2027.